How NSFAS Uses Third-Party Data (SARS, Credit Bureaus) for Eligibility

The National Student Financial Aid Scheme (NSFAS) is South Africa’s largest student funding provider, helping thousands of young people access higher education every year. But did you know NSFAS doesn’t just rely on the documents you submit when applying?

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NSFAS verifies your household income through SARS and credit bureaus — not just what you submit.

This is done to make sure the system is fair, accurate, and reaches the students who truly qualify. In this guide, we’ll explain how NSFAS uses third-party data, why it matters, and what you as a student need to know about the process.

Why NSFAS Uses Third-Party Data

NSFAS collects information from trusted government and financial institutions for several reasons:

Prevent fraud – Some applicants understate their household income. Third-party checks help identify false declarations.
Ensure fairness – The system directs funds only to households below the income threshold.
Automate and speed up processing – By pulling data directly from external databases, NSFAS reduces delays.
Government accountability – As a public fund, NSFAS must follow strict rules to ensure responsible spending.

The Role of SARS in NSFAS Verification

The South African Revenue Service (SARS) plays a key role in NSFAS income checks:

What SARS provides: Official income details from tax returns of parents, guardians, or sponsors.
How NSFAS uses it: Confirms whether household income falls within the NSFAS thresholds:
- R350,000 or less per year for most applicants.
- R600,000 or less for students with disabilities.

Example: If a parent declares R150,000 on the NSFAS form but SARS records show R500,000, NSFAS will likely reject the application.

Importantly, NSFAS does not send your family’s tax details back to SARS. The flow of information goes one way — from SARS to NSFAS — for verification only.

The Role of Credit Bureaus in NSFAS Verification

Credit bureaus also assist NSFAS by supplying:

Financial profiles – Including existing loans, bonds, and repayment histories.
Household financial standing – Offering a broader view of economic status.

How NSFAS uses it:

Cross-checks whether income claims align with credit activity.
Prevents wealthier households from misusing the system by hiding actual financial strength.

Clarification: These checks do not affect a student’s credit score. They serve only to verify eligibility.

Other Data Sources Used by NSFAS

NSFAS also works with several other institutions:

Home Affairs – Confirms ID numbers, citizenship, and age.
Department of Social Development (DSD) – Verifies whether an applicant is a SASSA beneficiary.
Educational Institutions (universities & TVETs) – Provide registration details, course enrolment, and academic progress.

Together, these checks give NSFAS a 360-degree profile of each applicant before approving funding.

How the Verification Process Works (Step-by-Step)

Student submits an application with required documents.
NSFAS system automatically pulls third-party data from SARS, credit bureaus, and Home Affairs.
Cross-checks run against declared household income.
If records align, the application moves to funding approval.
If mismatches appear, NSFAS requests extra documents or rejects the application.

Common Reasons Students Are Rejected After Data Checks

Parents or guardians under-declare income compared to SARS records.
Household income exceeds the NSFAS threshold.
Incorrect or missing ID or household details.
Declaring financial support incorrectly.

What Students Can Do if There’s a Discrepancy

If your application is flagged due to third-party data:

Double-check household income – Ensure declared figures match official records.
Request updated SARS/credit documents – Outdated records sometimes cause errors.
Lodge an appeal on myNSFAS – Submit proof to support your claim.
Keep communication open – Strong evidence is essential for a successful appeal.

Transparency & Student Concerns

“Is my data safe?”
Yes. NSFAS complies with the Protection of Personal Information Act (POPIA) to safeguard student data.
“Will this affect my family’s tax or credit history?”
No. The checks only verify details and do not alter tax or credit records.
“Can NSFAS make mistakes?”
Yes, which is why students can use the appeals process. Always submit accurate, up-to-date information.

Frequently Asked Questions (FAQ)

1. Does NSFAS check both parents’ income if they are separated?
Yes. If both contribute to the household, NSFAS considers their combined income.

2. What if my parents don’t submit tax returns to SARS?
NSFAS will rely on available records and may request additional proof from you.

3. Do SASSA beneficiaries need SARS verification?
SASSA beneficiaries are automatically considered eligible regardless of SARS data.

4. Can I apply for NSFAS without giving consent for data checks?
No. Consent is mandatory for the application to be processed.

5. How long does the third-party verification process take?
It usually happens automatically within a few days of submitting your application, but delays may occur during peak periods when many students apply.

6. Can NSFAS check bank statements directly?
No, NSFAS does not have access to your personal bank accounts. It relies on SARS, credit bureaus, and other government departments for verification.

7. What happens if my household income changes after my application is approved?
You must inform NSFAS. A significant increase in income could affect future funding, while decreases may work in your favour during re-evaluation.

8. Does NSFAS look at extended family income, like grandparents or siblings?
No. NSFAS only considers the income of parents, legal guardians, or direct caregivers who are financially responsible for the applicant.

9. Can I request to see the third-party data NSFAS used in my application?
Yes. Under POPIA, you have the right to request access to the information used to make funding decisions. You can contact NSFAS directly to initiate this request.

Also check: Can You Get a Student Loan While on NSFAS?

NSFAS relies on third-party data from SARS, credit bureaus, and other government institutions to ensure funding goes to the right students. These checks protect the system, speed up processing, and guarantee fairness.

If your application is rejected because of data mismatches, don’t panic. Use the appeals process to clarify your case and provide supporting documents.

Tip for students: Always declare your household income accurately and keep records updated to avoid problems later.