ALICE, EASTERN CAPE – The National Student Financial Aid Scheme (NSFAS) has rejected allegations made by student organisations at Lovedale TVET College over funding decisions affecting students.
The South African Students Congress (SASCO) and the Economic Freedom Fighters Youth Command (EFFYC) submitted a written statement to ECnews Live. They claimed more than 90 students were unfairly defunded. They also alleged that some students lost accommodation.
The organisations further claimed that supplementary examination students could not access funding. They added that N+1 students lost their allowances without formal communication.
After receiving the allegations, ECnews Live requested an official response from NSFAS.
NSFAS Rejects Defunding Claims
In its written response, NSFAS denied that it had arbitrarily defunded students. The scheme said it reassessed applications to ensure they complied with the TVET Funding Eligibility Guidelines.
NSFAS reviewed 544 senior applications linked to Lovedale TVET College. These included 433 Cycle 1 applications and 111 Cycle 2 applications.
The scheme said 166 students no longer qualified. It explained that these students did not meet the academic progression requirements. NSFAS also reprocessed 378 applications for academic eligibility.
According to NSFAS, 288 students had no funding issues. Another 48 applications remain under review. A further 42 applications are undergoing an exception review before a final decision is made.
NSFAS said the reassessment was a verification process. It said the exercise was not a blanket defunding programme.
Accommodation Allowances
SASCO and EFFYC also alleged that some students were removed from NSFAS-accredited accommodation after losing funding.
NSFAS said many of the affected students are exit-level students. These students are completing only their remaining subjects.
The scheme said Clause 4.6.8.4 of the TVET Funding Eligibility Guidelines applies to these students. Under the policy, they are treated as distance-learning students for funding purposes.
NSFAS said they qualify only for personal care allowances. They do not qualify for accommodation, transport or meal allowances.
The scheme said it adjusted the allowances to comply with funding rules. It insisted that it did not withdraw funding.
Supplementary Examination Students
The student organisations also claimed that students who passed supplementary examinations could not access funding because the NSFAS registration portal remained closed.
NSFAS denied the allegation. It said the portal closed on 21 March 2026 in line with the registration schedule.
The scheme reopened the portal on 28 April 2026. It kept the portal open until 14 May 2026. NSFAS later reopened the portal again. This allowed colleges to upload outstanding registration information. The final submission deadline was 13 July 2026.
NSFAS said the additional opportunity ensured that eligible students could still be considered for funding after their results were finalised.
N+1 Students
SASCO and EFFYC also alleged that N+1 students lost their allowances in June without formal communication.
NSFAS rejected the allegation. It said the allowance adjustments followed the Funding Eligibility Guidelines.
The scheme said many of the affected students were exit-level students. It said these students qualified as distance-learning students.
NSFAS said those students qualify only for personal care allowances. It added that eligible students continue to receive the allowances linked to their funding category.
Student Organisations Stand by Their Claims
Despite NSFAS’s response, SASCO and EFFYC maintain that the funding decisions have caused hardship for affected students.
The organisations continue to call for intervention from the Department of Higher Education and Training and other oversight bodies.
They also raised concerns about outstanding examination results and the implementation of the Services SETA bursary programme.
