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Multiple funding crises open door to scammers as students await loan approvals and accommodation

Multiple funding crises open door to scammers as students await loan approvals and accommodation
Students protesting on the 2nd day at George Tabor College on September 17, 2024 in Soweto, South Africa. It is reported that NSFAS funded students studying Agricultural Science are allegedly being chased away from the Land Is Worth Farm Accommodation during the weekend and are told to go to Soweto where they do not have any accommodation. (Photo: Gallo Images / Fani Mahuntsi)
Siyabonga Goni
By Siyabonga Goni
8 Apr 2025
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Scammers are taking advantage of the National Student Financial Aid Scheme’s (NSFAS’) crises as students and accommodation providers are caught in a financial struggle because of delays on loan approvals and a failure to pay the full amount owed to landlords.

“We are trying to survive. Sometimes we eat once a day — just four slices each. Sometimes there’s nothing. We buy juice, and when we have money we eat twice a day — that’s a big achievement for us,” said a University of Pretoria student, whose National Student Financial Aid Scheme (NSFAS) loan application remains unapproved.

This student is among many from the “missing middle” — those whose family income falls between R350,000 and R600,000 annually — now stuck in limbo. Despite a government promise to support them, financial aid delays are pushing students to the edge.

Read more: Nzimande announces NSFAS acting chair and additional R3.8bn for ‘missing middle’

Students in a limbo


Daily Maverick spoke to students from Tshwane University of Technology and the University of Pretoria, who requested anonymity due to fear of victimisation. They described a daily battle to meet basic needs, with no answers from NSFAS and no guarantees about their accommodation.

“I’ve written tests, and in some of them, I didn’t do well — not because I didn’t study, but because of stress and depression. It’s tough to focus,” said a University of Pretoria student.

A Tshwane University of Technology student said that her NSFAS status had been stuck for two months, leaving her at risk of eviction. 

“Accommodation providers told students this is not a charity case. If NSFAS doesn’t pay or we don’t, we have to move out. It’s stressful. I’m trying to focus on school and NSFAS, and also worrying about what I’ll eat. This is stressing people at home,” she said.

Read more: Uncovering the truth: NSFAS’ ghost students claim sparks controversy over accommodation payments

Funding promises fall short


In 2024, former Higher Education and Training minister Blade Nzimande launched the new loan scheme with a R3.8-billion budget to support missing middle students. The scheme was meant to assist 47% of missing middle students — about 31,884 of the 68,446 estimated.

But by August 2024, only 1,300 applicants had met the eligibility criteria. Many others remain in limbo with little to no communication from NSFAS.

Asive Dlanjwa, the spokesperson for the South African Union of Students, confirmed to Daily Maverick that the union had received numerous complaints regarding unpaid loans. “We have written to NSFAS about the matter, but despite reaching out we have not received any comprehensive response,” he said.

Daily Maverick sent questions to NSFAS regarding the delays and measures to counter scammers. A response had not been received by the time of publication.

Scammers exploiting the crisis


The chaos has created fertile ground for scammers posing as NSFAS officials. On Facebook groups, these fraudsters offer to “fix” applications for a fee — exploiting desperate students.

“A person messaged me claiming they could get my loan approved for a fee. I’m tempted, because NSFAS isn’t helping,” said a University of Pretoria student.

Student placards at George Tabor College on 17 September 2024 in Soweto, South Africa. (Photo: Gallo Images / Fani Mahuntsi)



A Tshwane University of Technology student had a similar encounter. 

“I was approached by scammers, they wanted R1,200 up front. They said once I was accepted, I’d have to pay more, (however) I need books and a laptop — I can’t afford that.”

Accommodation funding delays deepen crisis


NSFAS also recently missed a R44-million payment to the Private Student Housing Association (PSHA) in March 2025. Although a partial payment of R27-million was made, the outstanding amount has grown.

Kagisho Mamabolo, the association’s CEO, told Daily Maverick that more than 130,000 students were at risk of eviction nationwide at the start of 2025. 

“This unfortunate situation arises when NSFAS fails to make timely payments, leaving accommodation providers in a difficult position,” said Mamabolo.

In a statement released on Monday 7 April 2025, NSFAS has now promised that accommodation payments will be processed on 17 April 2025. A comprehensive list of students who applied for NSFAS-accredited accommodation is also expected to be provided to landlords.

Read more: Unpaid NSFAS fees threaten student accommodation: a looming crisis ahead of 2025 academic year

In the statement, NSFAS spokesperson Ishmael Mnisi urged landlords not to evict students.

“NSFAS reiterates the call to landlords to refrain from evictions and to collaborate with the scheme by submitting their claims according to guidelines. This cooperation is crucial to ensuring students maintain stable living conditions while pursuing their studies,” said Mnisi.

Dlanjwa echoed this sentiment, urging landlords to show compassion and refrain from evictions. DM

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