For the 2024 academic year, NSFAS will increase allowance in 2024 is uncertain. There are a number of factors that will influence the decision, including the cost of living, inflation rates, government budget allocations, evaluation processes, and stakeholder engagements.
In 2023, NSFAS increased the living allowance for students by 10%. This was the first increase in the living allowance in three years. The increase was welcomed by students and their families, but it is still not enough to cover the rising cost of living.
Inflation rates in South Africa are currently at a high of 5.6%. This means that the cost of goods and services is increasing at a rapid pace. This is putting a strain on the budgets of many households, including those of students and their families.
The government budget for NSFAS is also limited. In 2023, the government allocated R47.6 billion to NSFAS. This is an increase of 10% from the previous year. However, the demand for NSFAS funding is also increasing. In 2023, there were over 1 million applications for NSFAS funding, and only 600,000 students were funded.
The evaluation process for NSFAS is also a factor that will influence the decision to increase the allowance. NSFAS is currently evaluating the effectiveness of its current funding model. The evaluation will look at a number of factors, including the cost of living, inflation rates, and the impact of the allowance on students’ academic performance.
Stakeholder engagements are also important. NSFAS will consult with a number of stakeholders, including students, parents, universities, and government departments, before making a decision to increase the allowance.
Whether NSFAS will increase allowance in 2024 is uncertain. There are a number of factors that will influence the decision, and it is too early to say what the outcome will be.