Annually, the National Student Financial Aid Scheme (NSFAS) financially supports qualifying students from poor and working class backgrounds.
The funds used to financially support students come from Fiscus funding from the National Treasury through the Department of Higher Education and Training (DHET), and other government departments such as Basic Education, National Skills Fund, and Sector Education and Training Authority (SETA).
Additionally, the Scheme also receives some funds through interest from funds invested before disbursement and interest on student loans.
Over the years, the budget allocation for NSFAS has been increased.
In the 2020/21 financial year, the government bursary scheme allocated R37.5 billion to institutions of higher learning, and this has since increased over the years.
It is for this reason that the Scheme has indicated that budget allocation will increase even in the upcoming financial years.
In every academic year, NSFAS tranches are received from DHET in April, June, August, and October.
According to tranches received in April 2023, universities received an allocation of R28 674 617 whilst Technical and Vocational Education and Training (TVET) Colleges have received R8, 954, 222 for the current academic year.
This comes after DHET committed to making upfront payments to institutions, which allowed NSFAS-funded students to register without paying a registration fee.
In 2022, NSFAS paid universities a total of R38, 595, 107, and these institutions used R96.96% of its 2022 allocation. TVET Colleges used 70% of their 2022 allocation which was of the value of R7 182 916.
Since 2020, public universities have been receiving a bigger portion of the NSFAS budget allocation compared to TVET Colleges.
What Does NSFAS Cover?
The government bursary scheme covers various aspects of tertiary education for students who meet the eligibility criteria.
Financial assistance is provided for tuition fees, accommodation, books, and allowances for students who come from poor and working-class families. NSFAS also provides funding for students with disabilities.
