As of May 2025, the National Student Financial Aid Scheme (NSFAS) is under growing pressure to revise its monthly student allowances in response to rising costs and student demands.
Many South African students are waiting anxiously for a mid-year update, hoping for relief from increasing academic and living expenses.
This article outlines the latest developments, current allowance amounts, and what changes may be on the horizon for July 2025.
Current NSFAS Allowance Structure (2024/2025)
National Student Financial Aid Scheme currently supports students with monthly allowances designed to cover key living and academic expenses. Here’s a breakdown of the typical disbursement structure:
| Allowance Type | Amount (ZAR) per Month | Notes |
|---|---|---|
| Living Allowance | 1,650 | For university students |
| Accommodation Allowance | Up to 5,200 | Amount varies by institution |
| Transport Allowance | 750 | For off-campus students |
| Book Allowance | Up to 5,460 (annual) | Paid once a year |
These figures have remained unchanged throughout the 2024/2025 academic year, despite inflation and economic shifts.
Is an Increase Coming in July 2025?
As of now, no official confirmation has been issued regarding a mid-year increase in NSFAS monthly allowances for July 2025. However, the Department of Higher Education and National Student Financial Aid Scheme are reportedly reviewing the current funding model in collaboration with National Treasury.
In April 2025, Minister Blade Nzimande acknowledged rising student concerns and emphasized that budget evaluations are in progress.
Although there’s no guarantee of a July boost, insiders suggest a higher likelihood of changes being implemented in the 2026 academic year based on the 2025 fiscal review.
Why a Mid-Year Increase Is Under Consideration
Several urgent factors are pushing the government to consider increasing NSFAS support:
1. Inflation Pressures
The South African Reserve Bank reported a 5.9% year-on-year inflation rate in Q1 2025, significantly impacting:
- Food prices
- Transport fares
- Rental and utility costs
2. Digital Learning Expenses
With universities shifting towards digital learning models, many students struggle to afford:
- Reliable internet access
- Laptops or tablets
- Software and digital textbooks
3. Student Advocacy
Multiple Student Representative Councils (SRCs) and national bodies have presented formal requests for updated allowance amounts to better reflect actual costs of living.
What Students Should Do in the Meantime
While awaiting a final decision, NSFAS-funded students are encouraged to:
- Monitor official announcements from National Student Financial Aid Scheme and the Department of Higher Education
- Budget carefully based on current allowance figures
- Stay active in SRC discussions and national student forums for real-time updates
Any increase—if approved—could be announced by late June or early July. If not, students should anticipate changes as part of the 2026 application cycle.
Key Takeaways
- No confirmed increase in NSFAS allowances as of May 2025
- Government and Treasury are reviewing feasibility for potential adjustment
- Students urged to stay informed and manage current funds wisely
- Likely changes could take effect in 2026 if not implemented mid-year
While hopes remain high for a mid-year increase in National Student Financial Aid Scheme allowances, no confirmed decision has been made as of May 2025. Government reviews are underway, influenced by economic challenges and strong student advocacy.
Students should stay alert, budget wisely, and prepare for possible updates that could shape the 2026 academic year if not July 2025.
FAQs
Will NSFAS increase monthly allowances in July 2025?
No official decision yet, but internal reviews are ongoing with a chance of future adjustment.
How much is the current NSFAS living allowance?
R1,650 per month for university students.
When will any allowance changes be announced?
Expect updates by late June or early July 2025 if changes are approved.