Thousands of university and TVET college students across South Africa are paying the price for administrative failures at the National Student Financial Aid Scheme (NSFAS) with funding wrongly cut, allowances frozen for months, and accommodation payments left unpaid.
Nationally, NSFAS has been forced to reinstate funding for 3,234 university students and 2,476 TVET college students after their cases were flagged for review.
The cases centre on dual registration issues, incorrect qualification codes and other administrative complications that have left students in financial limbo.
Deputy Minister of Higher Education and Training Yusuf Cassim has described the situation as an academic crisis, warning that students are being disadvantaged not by their results, but by paperwork.
Nowhere is that clearer than at Nelson Mandela University, where 357 students had their funding and allowances wrongly suspended because of incorrect qualification codes.
According to Cassim, some of those students went up to five months without a cent.
“For students who depend entirely on NSFAS, this is not just about fees. This is about food, transport and a roof over their heads,” Cassim said.
The same pattern emerged at Tshwane University of Technology, where 182 students had their funding restored after it was cut for the same reason – incorrect codes.
More than 300 additional cases have been submitted to Cassim’s help desk for urgent intervention.
But the crisis extends beyond tuition. Accommodation has become a major flashpoint.
A total of 1,212 students who were placed in accredited accommodation after the NSFAS portal had closed have not received their accommodation payments.
Another 115 students are in the same position despite having their funding approved, leaving landlords unpaid and students facing eviction.
For students on the ground, the statistics translate into daily hardship.
One student Tebogo Molope said he has been going through a tough time since his allowance was cut.
“NSFAS was paying for my accommodation before, then suddenly halfway through the year it just stopped,” said one affected student. “They didn’t give me a reason. I don’t know how I’m going to continue paying for my place to stay, ” Malope said.
Another student said Bridgeth Tlou’s said her accommodation funding was stopped.
“My allowance was cut and I have not received any allowance since the beginning of the year. I applied for the maximum number of modules but I have not received an allowance or even a book allowance. How am I supposed to study?,Thousands said.
These are not isolated complaints. For many NSFAS beneficiaries, the allowance is their only income.
When it stops, they cannot buy food, cannot get to campus, and cannot afford textbooks.
The current chaos comes after years of instability at NSFAS.
The scheme has faced repeated criticism over its payment systems, its direct payment service providers, and its ability to accurately verify student registration data with institutions.
Last year, the scheme was placed under administration as it battled to stabilise its systems, yet students say problems persist.
Higher education activists argue that the communication breakdown between NSFAS, universities and TVET colleges is at the heart of the problem.
When qualification codes are incorrectly captured by an institution and NSFAS automatically defunds a student without proper verification, it is the student who is left to navigate the appeals process for months.
Cassim said his office is working through a backlog of cases, but conceded that the system needs urgent reform.
“We can not have a situation where students are academically excluded because of an admin error. The administrative burden should not be carried by the most vulnerable students,” he said.
