NSFAS Increases University Student Allowances by 4%, Announces Minister Nkabane

In a bold move to address the rising cost of living and long-standing socioeconomic challenges, the National Student Financial Aid Scheme (NSFAS) has announced a 4% increase in allowances for university students. Minister Dr. Nobuhle Nkabane confirmed the decision on Friday, emphasizing that the adjustments are part of a broader strategy to transform South Africa’s higher education landscape and ensure equity in access for all learners.

Responding to Economic Pressures with NSFAS Reforms

Amidst escalating living costs, the Department of Higher Education and Training (DHET) has worked closely with NSFAS, Universities South Africa (USAF), and various student formations to recalibrate financial support. The decision to increase NSFAS allowances by 4% for university students comes as a direct response to the economic pressures faced by millions across the country.

“We have considered the cost of living, which is very high, as well as some of the socioeconomic challenges that our people are facing every day. So we’ve decided to then adjust student allowances for this financial year to 4%,” Minister Nkabane stated during her address on SABC.

Boosting TVET College Support

In addition to the 4% increase for university students, NSFAS is also extending significant support to students at Technical and Vocational Education and Training (TVET) colleges. To attract more students to these institutions, the allowances for TVET colleges have been increased by an impressive 46%, rising from R10,000 per annum to R14,600.

This substantial boost in NSFAS funding for TVET students is aimed at addressing issues of social justice and providing equitable educational opportunities for students from disadvantaged backgrounds. The minister underscored that the reforms are part of a wider commitment to transform the post-school education and training system in South Africa.

NSFAS Oversight and the 2025 Academic Year

The recent decision by NSFAS follows a series of oversight visits by the DHET to various higher education institutions. During these visits, concerns about student preparedness for the 2025 academic year were raised, prompting urgent discussions with universities and student bodies alike. One of the critical issues highlighted was the state of student accommodation—a matter that has increasingly dominated the headlines.

During her oversight visit to the University of KwaZulu-Natal (UKZN), Minister Nkabane was briefed on significant safety concerns, particularly regarding off-campus residences managed by NSFAS. Incidents involving allegations of rape and gender-based violence have underscored the need for a comprehensive review of student accommodation practices. These revelations have further cemented the importance of NSFAS reforms, ensuring that students are not only financially supported but also safeguarded in their living environments.

Addressing Student Accommodation Challenges

Recent scandals have brought to light disturbing practices in some student accommodation facilities. At eThekwini TVET College, for example, there have been reports of landlords demanding sexual favors in exchange for housing, a situation that NSFAS administrator Freeman Nomvalo has vowed to tackle head-on. Nomvalo confirmed that an investigation into these incidents is already underway, and strict measures, including the potential blacklisting of offending service providers, are being considered.

“The steps we’re going to take if that is found to be true is that we will start the process of blacklisting those kind of service providers because that is not something that we’re encouraging,” Nomvalo stated. He further urged affected students to report any similar occurrences, emphasizing that NSFAS is committed to ensuring the safety and dignity of all learners.

The gravity of the accommodation crisis was also highlighted by UKZN SRC President Siyabonga Mlondo, who warned that the next major student uprising could be triggered by unresolved accommodation issues. Mlondo stressed the urgent need for institutions to invest in safer, more reliable housing facilities, noting that decreased block grants have already strained some universities.

Transferring Responsibility for Student Accommodation

In a significant policy shift, Minister Nkabane is considering transferring the management of student accommodation away from NSFAS back to higher education institutions. This proposed change aims to alleviate the administrative burdens that NSFAS has long faced and to allow universities to have more direct control over the quality and safety of student housing.

“USAF is busy engaging with NSFAS and the department because I gave them that task to see how best we transfer that responsibility back to universities,” Nkabane explained. The move is seen as a step towards addressing the systemic issues that have plagued student accommodation for years, ensuring that the NSFAS funds are used solely for the benefit of learners.

Eliminating Barriers to Higher Education Applications

In another move to enhance access to higher education, Minister Nkabane announced plans to scrap the application fees imposed on prospective students. It was revealed that private companies, such as the Central Applications Office (CAO), had been charging fees—up to R250 per application—resulting in significant profits while limiting access for many disadvantaged students.

“We don’t want to see any student pay for application fees to access higher education which is a constitutional requirement,” she said. This directive is expected to remove financial barriers for thousands of potential applicants and further solidify NSFAS’s role in promoting equitable educational opportunities.

A New Era for NSFAS and South African Higher Education

With these comprehensive reforms, NSFAS is set to usher in a new era in South African higher education. The targeted increases in financial aid, combined with measures to improve student accommodation and eliminate application fees, demonstrate a robust commitment to addressing both the immediate and long-term needs of students.

Minister Nkabane’s vision is clear: “It will not be business as usual. We don’t want to see anyone looting money off our poor students. We want to clean the system and leave a good legacy.” The appointment of a newly reformed NSFAS board further reinforces the government’s determination to address governance issues and ensure that the scheme works solely for the benefit of learners.

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The recent announcements regarding NSFAS underscore a significant commitment to transforming South Africa’s higher education landscape. By increasing allowances for university and TVET students, addressing critical safety issues in student accommodation, and eliminating application fees, NSFAS is not only responding to current economic challenges but also laying the groundwork for a more equitable and robust educational system. These strategic reforms are expected to benefit thousands of students, ensuring that higher education remains accessible and affordable for all South Africans.