The National Student Financial Aid Scheme (NSFAS) has transferred R222.7 million to six universities to settle outstanding allowances for 2,927 student-teachers under the Funza Lushaka Bursary Programme.
The payout covers 2,927 students training to become teachers. It follows a meeting in Cape Town between deputy higher education minister Yusuf Cassim, NSFAS leadership and programme officials.
Six universities receive R222.7m NSFAS payout
The six universities that received the Funza Lushaka funding are:
- Central University of Technology
- North-West University
- University of Fort Hare
- University of Limpopo
- University of Pretoria
- University of South Africa
The universities were selected after successfully submitting and verifying their student allowance claims.
The process cleared NSFAS checks after the identified student-teachers faced months-long delays among in receiving living, meal and accommodation allowances.
Other participating institutions still have pending or unverified claims. NSFAS will release the remaining funds in batches as universities meet the required requirements.
Universities now responsible for final payout
With the transfer complete, the six universities must now handle the final disbursement of allowances to eligible students.
The funding covers tuition, accommodation, meals, learning materials and living costs.
Cassim stressed the need for quick confirmation that the money reaches those who have waited months, following a stream of complaints channelled through his office.
NSFAS, meanwhile, noted that responsibility for distributing the funds now sits with the institutions themselves.
The latest payment does not clear the entire Funza Lushaka backlog. NSFAS says many institutional claims remain pending, with verification typically taking around four weeks.
More than R500 million in Funza Lushaka funding for the year remains unclaimed.
What happens next
Universities with outstanding claims have until September 13, 2026 to submit validated student lists. This would allow NSFAS to complete verification in time for an October payout round.
The Funza Lushaka programme, run through the Department of Basic Education and financially administered by NSFAS, has allocated R1.3 billion across 23 universities for 2026.
Cassim has instructed NSFAS to follow up directly with institutions lagging on submissions.
A joint workshop planned for November aims to move the claims system away from manual logs towards automation.
The goal is to establish clearer timelines and improve communication with student-teachers ahead of the next academic year.
Funza Lushaka backlog comes amid wider NSFAS scrutiny
The Funza Lushaka payout comes against a backdrop of broader concerns about NSFAS administration.
More than 40,000 students across 76 higher education institutions received improper funding worth R5.1 billion, according to a Public Protector report.
Portfolio Committee on Higher Education and Training chairperson Tebogo Letsie described the scale of the misfunding as “astronomical”, warning against treating it as a routine administrative error.
Earlier probes uncovered 822 ghost beneficiaries in a separate fraud investigation.
The Special Investigating Unit previously recouped R2 billion from improper claims.
Students seeking official information can find full details about the Funza Lushaka Bursary Programme through the Department of Basic Education.
