27 October 2025 | South Africa

Reports that some National Student Financial Aid Scheme (NSFAS) beneficiaries are spending study allowances on online betting have drawn sharp reactions from labour and lawmakers, with calls for tighter controls and urgent financial-literacy programmes at universities and TVET colleges.

At a Social Services and Peace & Security Cluster media briefing on Monday, Tebogo Letsie, Chairperson of Parliament’s Portfolio Committee on Higher Education and Training, said the problem cannot be separated from persistent late payments to students.

“The department should look closely at the ongoing issue of delayed payments to beneficiaries. Students end up with no money, borrow to survive, and some then try their luck online hoping to make more — which only deepens debt,” Letsie said.

PSA: Gambling with grant money “deeply disturbing”

In a media release, the Public Servants Association (PSA) said it is “alarmed” by reports of NSFAS funds being channelled into online betting, warning that the trend undermines the purpose of the scheme and threatens the academic and mental well-being of thousands of young South Africans.

Citing national indicators, the PSA noted that adult gambling participation has nearly doubled to 65.7% since 2017 — a context in which vulnerable students can be quickly drawn into addiction and mounting debt. The union also referenced Special Investigating Unit (SIU) findings that over R2 billion in overpayments were made to higher-education institutions between 2018 and 2021, affecting approximately 40 000 students — evidence, it said, of systemic failures in financial oversight around student funding.

What reforms are being urged

• Stricter financial controls at NSFAS to prevent irregular or excessive payments.

• Financial-literacy programmes embedded at tertiary institutions to promote responsible money management.

• Collaboration with regulators to restrict access to gambling platforms using NSFAS disbursements.

• Psychosocial support for students already struggling with gambling addiction and debt.

• Industry responsibility: the PSA says gambling operators should help fund awareness and treatment programmes on campuses.

Holistic fix needed

While condemning any misuse of public funds, Letsie stressed that payment reliability, student support and accountability must be addressed together to break the cycle that pushes some students toward risky betting.

Both the PSA and the committee chair agree: NSFAS must work as intended — to keep students in class, not in debt — and the system surrounding it needs immediate reinforcement to protect beneficiaries and the public purse.

-The VIP Team 

-SA Parliament 

-PSA 

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