More than R5 billion in National Student Financial Aid Scheme (NSFAS) funding was possibly allocated to more than 40 000 students who did not meet the required financial criteria, according to findings by the Special Investigating Unit. The affected funding involved students at 76 higher education institutions whose household incomes were above the bursary threshold.
The findings have renewed attention on how NSFAS determines financial eligibility and who should receive state funded assistance. For Gauteng students planning to study at public universities and TVET colleges, understanding the household income limits, academic rules and application requirements is critical before applying for funding.
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Why More than R5 billion in NSFAS Funding Was Questioned
The SIU told Parliament’s Standing Committee on Public Accounts that its preliminary investigation identified more than 40 000 students who may have been funded incorrectly.
According to the SIU, more than R5 billion was possibly allocated to students whose household income exceeded R350 000 a year, which placed them outside the bursary income threshold applicable to the cases investigated.
The investigation found that some applicants did not submit their parents’ details. As a result, the required financial means test was not properly conducted in those cases.
The SIU findings date back to an investigation publicly presented to Parliament in April 2023. The unit said it was investigating the amounts involved and working to determine what money should be recovered.
Auditor General Also Flagged NSFAS Eligibility Problems
Separate concerns have since emerged through oversight of NSFAS funding.
According to figures cited from the Auditor General’s audit work, thousands of students may have received funding despite not meeting financial or academic eligibility requirements.
The findings included students who exceeded applicable income thresholds, students who did not meet academic progression requirements and cases involving beneficiaries recorded as deceased.
These findings are separate from the more than 40 000 cases identified in the SIU investigation and should not be counted as the same group of beneficiaries.
The broader findings highlight why applicants must provide accurate household, parental and income information when applying. NSFAS uses eligibility checks to determine whether an applicant qualifies for a bursary, a loan or does not qualify for financial assistance under a particular funding stream.
Who Qualifies For an NSFAS Bursary?
For students considering an application, the central question is whether they meet the current NSFAS financial and institutional requirements.
According to NSFAS, bursary applicants must generally be South African citizens or permanent residents and must study, or intend to study, at a public university or TVET college.
The main financial eligibility requirements include:
- A combined gross household income of no more than R350 000 per year for general bursary applicants
- A combined gross household income of no more than R600 000 per year for persons living with disabilities
- SASSA grant recipients automatically meet the financial eligibility requirement, subject to the applicable NSFAS rules
- Applicants must meet the relevant academic and institutional eligibility requirements
- Applicants must provide accurate personal and household information required for verification
NSFAS confirms that the R350 000 household income threshold remains a key financial requirement for its bursary scheme, while the higher R600 000 threshold applies to persons living with disabilities.
Students can check the official NSFAS bursary eligibility and application information before applying.
Who Does Not Normally Qualify For an NSFAS Bursary?
Meeting the income threshold does not automatically guarantee that every course or student will receive bursary funding.
Applicants must also satisfy NSFAS academic progression rules and study at an eligible public institution. Funding is intended for qualifying programmes at South Africa’s public universities and TVET colleges rather than private higher education institutions.
NSFAS also applies rules relating to previous qualifications, progression and whether a qualification duplicates previous state funded learning.
This means applicants should not rely only on household income when deciding whether they qualify. They should check the current eligibility criteria for their specific qualification and circumstances before submitting an application.
What if Your Household Earns More Than R350 000?
Students who exceed the bursary income limit may still have another NSFAS funding option.
NSFAS operates a student loan scheme aimed at the group commonly described as the missing middle. The scheme is available to qualifying applicants with a combined household income above R350 000 and up to R600 000 per year.
According to NSFAS, applicants must be accepted to study at a public university or TVET college and meet the applicable requirements. Students approved for this form of assistance must sign a loan agreement because, unlike a bursary, the funding is repayable under the scheme’s conditions.
The application process is similar to the bursary application process and includes creating a profile, completing an application and submitting the required information.
Full details are available through the official NSFAS student loan information page.
Documents Students May Need When Applying for NSFAS
Applicants should ensure that the information submitted to NSFAS is complete and accurate.
The SIU investigation showed how missing parental details could affect the financial means testing process. Current applicants may therefore be required to provide documents that allow NSFAS to verify their identity, household circumstances and income.
Depending on the applicant’s circumstances, NSFAS lists documents that may include:
- The applicant’s identity document or birth certificate
- Identity documents for parents, guardians or a spouse where applicable
- Both sides of a smart identity card where required
- Proof of income where applicable
- A completed Disability Annexure A for applicants living with disabilities
- A Vulnerable Child Declaration where applicable
- A Declaration for certain non SASSA applicants who do not have family details available
Not every applicant will need every document. The documents required depend on the information supplied during the application.
NSFAS publishes its current document requirements through its official application guidance.
How To Apply for NSFAS Funding
Applications are completed through NSFAS using the official online system when the relevant application cycle is open.
Applicants generally need to create a myNSFAS profile using their personal information, contact details and identity information. They must then complete the funding application, provide the requested household and academic information and upload supporting documents where required.
Applicants should make sure that names and identity details match official records and that parental, guardian or spouse information is supplied accurately where requested.
Students should also monitor their application status after submission and respond promptly if NSFAS requests additional information.
Application periods can differ depending on the academic year and, in some cases, the TVET academic cycle. Students should therefore check official NSFAS notices rather than assuming applications are open throughout the year.
Apply and check NSFAS application information
What This Means for Gauteng Residents
The funding issue is particularly relevant in Gauteng because the province has a large concentration of public universities, university campuses and TVET colleges serving students from across South Africa.
Students applying to public institutions in Johannesburg, Tshwane, Ekurhuleni and other parts of the province must ensure that their household information is correctly declared when applying for financial assistance.
The R350 000 threshold remains an important dividing line between the standard bursary scheme and the missing middle loan option for many applicants.
A household earning R350 000 or less may fall within the bursary income requirement, subject to the other eligibility rules. A household earning between R350 001 and R600 000 may instead fall within the income range for the NSFAS student loan scheme.
Applicants should also remember that financial eligibility is only one part of the assessment. Academic progression, the type of institution, the qualification being studied and other NSFAS funding conditions can affect the final decision.
Can Students Be Required to Repay Incorrectly Received NSFAS Money?
Funding received by someone who was not entitled to it may be subject to recovery.
The SIU has previously worked to recover money improperly or incorrectly paid through the NSFAS system and has pursued recoveries from institutions and other parties where investigations identified funds that should be returned.
The SIU said its investigation into the more than 40 000 potentially ineligible students included determining the amounts involved and what should be recovered.
This makes accurate disclosure important. Applicants should provide truthful and complete information about household income and family circumstances rather than withholding details that could affect the means test.
Frequently Asked Questions
Who qualifies for an NSFAS bursary?
South African citizens and permanent residents who meet the applicable requirements may qualify. For general bursary applicants, combined gross household income must generally not exceed R350 000 per year. The threshold is R600 000 for persons living with disabilities. Applicants must also meet institutional and academic requirements.
Do SASSA beneficiaries automatically qualify for NSFAS?
NSFAS states that SASSA grant recipients automatically meet the financial eligibility requirement for bursary funding. Other NSFAS eligibility conditions may still apply to the student and programme.
What if my household earns between R350 001 and R600 000?
You may fall within the income range for the NSFAS student loan scheme rather than the standard bursary scheme. Applicants must meet the loan programme’s additional requirements and sign a loan agreement if approved.
Can I apply for NSFAS if I study at a private college?
The standard NSFAS bursary scheme funds eligible students studying at South Africa’s public universities and TVET colleges. Students planning to attend private institutions should not assume that their studies qualify for NSFAS funding.
How do I apply for NSFAS?
Applicants should use the official NSFAS application system during an open application period, create or access their myNSFAS profile, complete the application and submit all required supporting information. Applicants should use the official NSFAS application guidance to check current requirements and application periods.
Students Should Check Eligibility Before Applying
The finding that more than R5 billion may have been allocated to students who did not qualify highlights the importance of accurate eligibility checks and complete household information in the NSFAS system.
For prospective and current students, the key distinction is clear. Households earning no more than R350 000 a year may qualify for bursary funding if all other requirements are met, while qualifying missing middle students with household incomes between R350 001 and R600 000 may be considered for the NSFAS student loan scheme.
Students should verify the latest rules directly with NSFAS, submit complete family and income information and ensure they understand whether they are applying for a bursary or a repayable loan.
