The National Student Financial Aid Scheme (NSFAS) has dismissed as false and misleading a viral social media claim that a student received a payment of more than R630,000 from the scheme.

The claim, widely circulated online, alleged that NSFAS had mistakenly paid a student R630,434.44 instead of a monthly allowance of around R6,000, and that the student had returned the money. However, NSFAS says this is not true.

In a statement, the scheme said preliminary investigations show that the image used in the post was manipulated and likely generated using artificial intelligence, with no link to any real NSFAS transaction. It further revealed that the student involved created the content for social media engagement.

NSFAS emphasised that it does not make large lump-sum payments directly to students. Instead, funds are paid to institutions, which then distribute allowances such as accommodation, food and transport according to strict funding guidelines.

“These systems are governed by strict financial controls and oversight mechanisms,” the scheme said, adding that there has been no breach or irregular payment linked to the viral claim.

The misleading post, shared widely on platforms like X (formerly Twitter), read: “NSFAS mistakenly sent her R630 432 instead of R6000 and she sent it back.”

NSFAS warned that the creation and spread of false information undermines public trust and could have serious consequences. The scheme says it is considering legal action against individuals who deliberately spread misinformation that damages its reputation.

The incident has also raised concerns about the impact of such claims on students who depend on NSFAS funding for survival.

For many students, NSFAS allowances are their only source of income, covering basic needs such as food, rent and учеб materials. False claims about large payouts can create unrealistic expectations, fuel frustration and deepen mistrust in the system, especially when students already face delays or challenges in receiving their allowances.

It may also expose students to public scrutiny and stigma, as narratives around “free money” can distort the reality of financial hardship experienced by beneficiaries.

The issue is particularly sensitive given past incidents involving NSFAS funds. In one of the most high-profile cases, Sibongile Mani mistakenly received about R14 million in her student account in 2017. She went on to spend around R880,000 before the error was discovered and was later found guilty of theft.

Mani has since rebuilt her life and recently graduated with honours from Walter Sisulu University, but her case remains a cautionary example of how administrative errors and public perception can intersect with serious legal consequences.

NSFAS has urged students and the public to rely only on its official communication channels for accurate information, warning that misinformation not only harms the institution but also affects the credibility and wellbeing of students who rely on its support.