The amount of R222.7Million has been transferred to six universities to clear outstanding payments for 2,927 Funza Lushaka Beneficiaries, with the establishments now set to clear the remaining allowances.
The R222,688,894 was transferred from the National Student Financial Aid Scheme (NSFAS) to the six universities after Higher Education and Training Deputy Minister Yusuf Cassim met with senior officials in the organization and the Funza Lushaka bursary team in Cape Town.
The payments intervene after challenges with clearing the allocations for the scheme’s beneficiaries.
With regard to those whose allowances have been cleared in this round, the next step should be for their university to clear the payments in their system.
Which Univeristies Got Paid?
The latest funding from NSFAS went to the following six universities:
Central University of Technology
North-West University
University of Fort Hare
University of Limpopo
University of Pretoria
University of South Africa
It is the responsibility of these six universities to clear the allowances of their respective Funza Lushaka beneficiaries.
By way of clarification, students should note that the announcement of the NSFAS transfer does not necessarily mean that the funds have been released to one’s personal account.
The university also needs to take action and process the relevant payments in its system.
Deputy Minister demands clarity on payment dates
Deputy Minister Cassim has directed NSFAS to inform the six universities as to when their respective beneficiaries will be cleared of their outstanding allowances.
This comes after intervention was needed on complaints from beneficiaries whose payments were delayed.
With regard to those whose accommodations, meals and learning materials are partly or wholly dependent on bursaries, such delays can cause significant stress to one’s studies.
The Ministry has therefore called on the six universities to ensure that the students who qualify to receive payments under the scheme are not put through further stress due to bureaucratic delays.
What is the Funza Lushaka Bursary Scheme?
The Funza Lushaka Bursary Scheme entails a multi-year program of financial assistance to students pursuing qualifications in education at publicly funded institutions.
The Department of Basic Education oversees the bursary, while NSFAS serves as the implementing agency which clears payments to the universities on behalf of the Department.
For the 2023 academic year, R1.3 billion has been allocated to the 23 universities which offer approved programs under the scheme.
The funds are cleared to the relevant institutions and are used to cover expenses such as:
- Tutorial fees
- Accommodation
- Meals
- Learning materials
- Living allowance
Students should note that the funding comes with specific conditions.
Other claims awaiting processing
The latest payment to the six universities was just one of several batches being processed by NSFAS.
During his meeting with NSFAS officials, Deputy Minister Cassim was informed that there were a significant number of claims awaiting processing.
There is a verification stage which takes place before any transfers can be effected, with the process taking up to four weeks, as per information shared.
The verification step enables the process of ensuring that a claim submitted by an institution is legitimate.
With the verification process in mind, it is essential to note that the timeliness of a university in submitting a claim can also affect when it can expect to receive approval.
R295.9Million uploaded for September payments
The institutions which received funding in this latest round of processing are set to get their allocations in September, with R295,988,585 in claims covering 3,095 students having been uploaded.
While the six universities got their share of the funding, it is important to note that an additional R295.9Million worth of claims were uploaded for processing.
Students should be aware that simply having a claim uploaded does not mean that a payment has been made, with the relevant checks and balances still needing to take place before any allowances can be released.
Over R500Million still awaits processing
There is a further amount of over R500Million which remains unprocessed, with institutions now being called to submit any outstanding claims to facilitate the relevant payments in October.
This means that a university will need to identify any claims which qualify for processing and submit them by 13 September.
Deputy Minister Cassim has directed NSFAS to inform institutions with claims still awaiting processing and request that they provide the necessary information to enable the relevant payments to be made by October.
NSFAS proposes November workshop
The challenges with payments have highlighted weaknesses in the current claims system.
NSFAS has proposed a joint workshop with stakeholders in November 2026 to review some of the structural flaws in the system in order to prevent similar challenges from arising in the future.
The issues which the workshop will need to address include:
- Reducing manual processes through automation
- Ensuring effective communication to beneficiaries
- Improving coordination between institutions and NSFAS
- Facilitating more efficient timing of claims and payments
With this in mind, the upcoming workshop can serve to prevent future challenges by addressing the causes behind the delays rather than merely dealing with the consequences.
What can affected students do?
Affected beneficiaries at the six universities should contact their institution to ascertain whether they have been included in the R222.7Million transferred by NSFAS.
If the allowances have not yet been paid, then those in their respective Funza Lushaka offices should be able to advise on:
- Whether the claim for a student has been submitted
- Whether the university has received the relevant funding from NSFAS
- Whether their payment has been processed
- When they can expect to receive their payment
Students should also retain any documentation and notifications they receive in case further action is needed.
Not all Funza Lushaka students have been paid
Although six universities have received funding from NSFAS, this does not mean that all students across the country who are beneficiaries of the scheme have been paid.
Some students may therefore need to follow up separately with their university to determine the status of their claim.
What does the payment mean for affected students?
For students who have benefited from the latest transfer, it is a welcome relief which should see their allowances cleared.
The processing of the R222.7Million highlights a number of issues which need to be addressed, however, with regard to the clearing of outstanding payments.
The backlog which has seen institutions struggle to process payments is also a major concern, which is why the proposed workshop in November 2026 could prove to be crucial.
NSFAS and the universities can work to resolve the causes of the delays, which would make it easier to deal with claims in the future.
With regard to Funza Lushaka, students need to ensure they get their allowances in a timely manner due to the financial commitments associated with their studies.
Source
Source: Department of Higher Education and Training information concerning the NSFAS payment of R222,688,894 to six universities for 2,927 Funza Lushaka beneficiaries
Department of Higher Education and Training website
Editorial policy
This article was independently produced for South African audiences in light of the information provided by the Department of Higher Education and Training.
The report makes a distinction between funds transferred to universities, claims uploaded for processing, and allowances cleared to students’ accounts. No assumptions have been made about any student being paid when no information to that effect was shared.
No unfounded figures have been included concerning payments, eligibility criteria or deadlines for submitting a claim.
Disclaimer
The timing of payments to beneficiaries can vary depending on processes which take place at a university after funding has been transferred to it by NSFAS.
Students should therefore contact their institution in order to clarify the status of their allowance.
Student awareness
Students should be wary of contacting any unauthorized parties which may seek to obtain one’s personal or financial information in connection with NSFAS or Funza Lushaka payments.
Scammers may target individuals by claiming they are able to facilitate payments or modifications to one’s application, but it is important to use official university and NSFAS channels when communicating in connection with one’s student funding.
