NSFAS to Clear 2024 Payment Backlogs by April 2025

The National Student Financial Aid Scheme (NSFAS) has confirmed its commitment to clearing all legitimate 2024 payment backlogs by 30 April 2025. This announcement comes as relief to many landlords who have been awaiting outstanding payments linked to student accommodation. 

In an official update released on the 7th of March 2025 to landlords, NSFAS expressed its gratitude for the continued support it has received from its partners, particularly those involved in the Private Student Accommodation Pilot Project. This collaborative effort, NSFAS stated, has significantly contributed to ensuring the smooth start of the 2025 academic year.

“Firstly, NSFAS would like to extend its gratitude for your ongoing support in the implementation of the Private Student Accommodation Pilot Project, which has played a significant role in ensuring the smooth start of the 2025 academic year,” the statement read.

Update on 2024 Payments

In addressing concerns over 2024 payment delays, NSFAS acknowledged that they are still processing legitimate claims from landlords and service providers. These payments, mostly related to student accommodation, have been under scrutiny since December 2024, when NSFAS first highlighted the complexities involved in resolving outstanding payments.

“During this exercise, it was found that some landlords either have not been paid or were only partially paid due to several factors,” NSFAS explained.

The primary reasons for these delays include:

• Payments initially redirected from landlords to students.
• Disputes over rental rates.
• Necessary adjustments, such as converting transport allowances into accommodation allowances for certain students.

These issues created complications in reconciling accounts and verifying claims. As a result, many landlords and accommodation providers were left waiting for overdue payments that were promised as part of NSFAS funding for the 2024 academic year.

Three catch-up payment cycle implemented

To address these challenges, NSFAS has undertaken three separate catch-up payment cycles since January 2025. These cycles were introduced to accelerate the process of clearing outstanding claims and to reassure service providers that efforts are being made to resolve the matter expediently.

“The reconciliation process is ongoing, and we aim to finalize it by 30 April 2025,” NSFAS confirmed.

Accommodation providers who have lodged legitimate claims can expect to receive full payment once their submissions have been verified. NSFAS emphasized that formal communication will be sent directly to those accommodation providers whose claims are deemed invalid or incomplete, providing clarity and transparency in the decision-making process.

This move by NSFAS is expected to restore confidence among landlords who are integral to providing suitable housing for students benefiting from the government’s financial aid scheme.

A step forward for 2025 payments

In the same announcement, NSFAS also shed light on the new payment structure for 2025, offering reassurance to accommodation providers that lessons have been learned from the previous year’s payment challenges.

Following the recent announcement by the Minister of Higher Education and Training, Dr. Nobuhle Nkabane, NSFAS has implemented a 4% increase in allowances for the 2025 academic year. This increase applies across various categories, including accommodation, meals, and transport allowances.

The new rates have been revised according to a Metro and Non-Metro classification, a move that NSFAS says is aimed at ensuring fair and region-specific funding for students.

“We believe these new allowance caps, guided by the Department of Higher Education and Training (DHET), will help standardize support and address disparities between urban and rural student experiences,” NSFAS stated.

Why the payment backlog happened

NSFAS attributes the delays to systemic issues that arose during the rollout of the Private Student Accommodation Pilot Project. The project, while successful in providing housing solutions for many students, also uncovered challenges related to the processing and verification of claims. 

These included miscommunication between NSFAS and service providers, inconsistencies in submitted data, and disagreements over rates.

The scheme emphasized that it has worked tirelessly since late 2024 to address these issues and improve its processes moving forward.

NSFAS Contact Details and Support

NSFAS is encouraging all stakeholders, including students and accommodation providers, to direct any queries regarding outstanding payments or the new 2025 rates to their official contact channels.

For assistance, Accommodation Providers can reach NSFAS via the following:

• Tel: 0800 067 327
• Email: [email protected]
• Website: www.nsfas.org.za
• Postal Address: Private Bag X1, Plumstead, Cape Town, 7801
• Physical Address: The Halyard, 4 Christiaan Barnard, Cape Town City Centre, Cape Town, 8000

NSFAS has assured the public that their team is working diligently to address any concerns and that every effort is being made to improve communication and service delivery in 2025.

The Road Ahead

NSFAS’s commitment to addressing payment issues, alongside the new 2025 allowance caps and payment schedules, offers hope that the system will become more efficient and reliable in the coming academic years.

For now, all eyes remain on the financial aid scheme’s ability to meet its self-imposed deadline and deliver on its promise to private accommodation providers