The National Student Financial Aid Scheme (NSFAS) has made a payment of more than R222.6 million to six universities to cover 2,927 Funza Lushaka bursary beneficiaries, who it appears the institutions will now have to pay the outstanding allowances to.
The payment, which came to R222 688 894, was confirmed in a media statement by Higher Education and Training Deputy Minister Yusuf Cassim, senior NSFAS officials and the Funza Lushaka Bursary Program team in Cape Town on Thursday.
This payment is meant to ensure that delays in payment to some Funza Lushaka beneficiaries, which have been causing some concern, will be resolved.
Six universities receive the latest payment
The latest sum was paid to the following universities:
- Central University of Technology.
- North-West University.
- University of Fort Hare.
- University of Limpopo.
- University of Pretoria.
- University of South Africa.
The universities concerned will now be responsible for processing the relevant payments to these students.
That means beneficiaries should not necessarily expect the R222.7 million to show up in their account from the NSFAS directly – the funds have been transferred to the institutions and they have to process them.
Deputy Minister wants students paid without further delays
Deputy Minister Cassim has asked NSFAS to ensure that the affected universities confirm to him when all eligible Funza Lushaka beneficiaries will be paid.
The request comes as students, who have experienced prolonged allowances, have raised the concern.
For beneficiaries, such an allowance suspension means a strain on their finances because the bursary usually covers accommodation, meals and other approved expenses.
As such, the Ministry has asked the institutions concerned to move the money without additional delay.
What is the Funza Lushaka Bursary?
The Funza Lushaka Bursary Programme is a multi-year bursary scheme that targets students who are training to be teachers.
The funding comes from the Department of Basic Education and NSFAS – the National Student Financial Aid Scheme – is the body responsible for disbursing the funds to the universities.
The scheme is meant to support future teachers.
The students who receive the bursary can apply for financial aid to cover expenses in accordance with the scheme’s rules.
NSFAS transfers R1.3 billion to 23 universities
23 universities have R1.3 billion allocated to them for the Funza Lushaka scheme for the current academic year.
The scheme covers a range of expenses, including:
- Tuition.
- Accommodation.
- Meals.
- Learning materials.
- A living allowance.
It is important to note that the amount and type of allowance for each individual beneficiary depends on the particular bursary plan.
The latest R222.7 million payment to six universities is therefore just part of the overall annual allocation rather than a specific bursary.
Why students have been waiting for payments
During the Thursday meeting, a particular concern expressed was the process that the institutions must follow before a claim can be approved by NSFAS.
NSFAS confirmed that there were a number of outstanding claims from institutions.
Before the money can be transferred, the claim has to be verified and according to the information provided, it takes about four weeks for this procedure to take place.
The verification process ensures that the claim is legitimate and valid before money is transferred.
However, if the claim is submitted late, this can cause additional delays.
Universities urged to submit claims on time
The Ministry has emphasised the responsibility that lies with the universities to ensure that the process moves smoothly.
The institutions must submit their claims to NSFAS so that the necessary funding can be transferred.
If the claim is submitted past the deadline, then students will experience a delay in receiving their allowances even if the money has been allocated to the scheme.
This is why the Ministry has drawn particular attention to the institutions with outstanding claims and requested that they confirm that beneficiaries will be able to continue receiving the allowances.
September payments already being processed
There is also progress on the next set of payments – the claims for R295 988 585 for 3,095 students in August have been uploaded for processing for the September disbursement.
This means that students who have included their claim in this group should be aware that uploading the claim for processing does not equal the money being available in their accounts.
The uploaded claim must still go through the relevant verification and payment process.
More than R500 million remains unclaimed
The scheme also has more than half a billion rand unclaimed.
The institutions concerned have been asked to submit the relevant claims by 13 September for the October payment.
The deadline means that particular urgency applies to institutions with outstanding claims that concern eligible beneficiaries.
Deputy Minister Cassim has instructed NSFAS to contact the institutions with outstanding claims and confirm that the necessary submission will take place within the given time frame.
NSFAS plans workshop to improve the system
The problems with the payments have also prompted NSFAS to propose a stakeholder workshop.
The idea is to look at the structural issues that affect the claim and payment processes, rather than the particular outstanding payments.
The considerations will include:
- Automating processes that are currently done manually.
- Improving the communication channel between students and the relevant institutions.
- Better stakeholder coordination.
- Improving the timeline for payments.
- Addressing the weaknesses in the claims process.
The workshop will take place in November 2026, in advance of the next academic year.
What Funza Lushaka students should do
Students who are waiting for their Funza Lushaka allowance to be paid should make inquiries about the status of the payment first.
Beneficiaries can contact the relevant financial-aid or Funza Lushaka office at their university to establish whether the claim has been submitted and whether the institution has received the payment.
Students should keep a record of any correspondence and notification of any type of payment.
If the institution has received the funds, but the allowance payment is outstanding, students should inquire with the institution about the internal process and when they can expect to receive the money.
The latest payment does not mean every student has been paid
The transfer of R222.7 million to six universities is a significant step, but it does not mean that every Funza Lushaka beneficiary in South Africa has received their allowance.
Each institution is at a different stage of the claims and payment process.
The latest news concerns the six universities that received the latest payment.
Students should therefore establish the status with their particular institution rather than assuming that the news about the national payment applies to them.
What the payment means for beneficiaries
As far as the 2,927 students who feature in the latest news item are concerned, the next step largely depends on their respective institutions processing the necessary payments.
The general issue is the efficiency of the claims system ahead of the next academic year.
The November 2026 workshop could provide an opportunity for NSFAS, universities and other stakeholders to address the recurring issues with the administrative process and reduce the reliance on manual procedures.
For the students, the desired outcome is that approved funding reaches beneficiaries in a timely manner, freeing them to get on with their studies rather than worrying about their allowances.
Source
Source: Department of Higher Education and Training information about the NSFAS payment to six universities for Funza Lushaka beneficiaries, with statements from Deputy Minister Yusuf Cassim.
Department of Higher Education and Training
Editorial policy
This article was independently written for South African students and families using the supplied Ministry information as its factual basis.
The report makes a distinction between money transferred to Universities, claims submitted for processing and allowances being paid to individual students. It has thus made no assumption that every beneficiary has already received payment.
No further bursary requirements, payment amounts or deadlines have been included beyond the information provided.
Disclaimer
The timing of payments can differ between institutions because universities have to process funds after receiving the transfers from NSFAS.
Students should confirm their status with their institution and use official NSFAS communication for current information.
Student awareness
Be cautious of people offering to “release” or “speed up” Funza Lushaka payments in exchange for money. Do not pay anyone who promises guaranteed bursary payments. The NSFAS and university processes should be verified through official channels before students provide personal or banking information.
