Johannesburg – The National Student Financial Aid Scheme (NSFAS) has uncovered “ghost students” during a verification process for outstanding rental payments, and says action will be taken against landlords facilitating the fraud.
NSFAS revealed that the identified “ghost students”, whom it does not fund, were not enrolled at any public university or college.
“This discovery underscores the importance of the verification process, which is a crucial step for NSFAS in processing payments to accommodation providers,” the student finance scheme said on Wednesday, (26 March 2025).
In a statement made available to The Bulrushes, NSFAS said it will investigate all accommodation providers who have submitted incorrect information in an attempt to unlawfully benefit from funds intended for legitimate NSFAS-funded students.
“While NSFAS is committed to ensuring that funds are disbursed promptly, it is equally important to maintain a rigorous verification process to guarantee that all claims are legitimate and in accordance with established policies,” the statement said.
“We appreciate the challenges faced by accommodation providers and strive to balance the needs of both students and accommodation providers while upholding compliance requirements in the disbursement of public funds, ensuring public accountability.
“Recognising that payment delays have been a persistent challenge, NSFAS is actively working to streamline payment processes.
“We are reviewing our claims verification and payment procedures to identify opportunities for improvement.”
NSFAS said it understands the financial pressures that accommodation providers encounter, particularly at the beginning of the year following the festive season.
“Consequently, the scheme is seeking solutions to enhance the payment process.”
Regarding outstanding rental payments, NSFAS said it wa committed to resolving all legitimate claims.
“We therefore appeal to landlords with outstanding payments not to evict students because NSFAS is committed to resolving all legitimate claims,” the statement said.
“It is essential to consider the impact of evictions on both students and landlords, particularly during these challenging times.
“At this point, NSFAS is adhering to the payment date of April 4th, 2025.
“However, we are continuously assessing our internal processes and the situation surrounding the payments.”
