More Than Half of South Africa’s University Students Rely on NSFAS Amid Budget Challenges. The National Student Financial Aid Scheme (NSFAS) plays a critical role in funding tertiary education in South Africa, with over half of the country’s university students depending on it.
Despite ongoing challenges, the government-backed financial scheme continues to support thousands of students across public universities and Technical and Vocational Education and Training (TVET) colleges.
NSFAS Funding Millions Despite Challenges
During a recent Department of Higher Education and Training briefing to the Portfolio Committee on Higher Education and Training, it was revealed that 542,653 eligible university students receive NSFAS bursaries annually. This figure surpasses the scheme’s initial target by 124,715 students, indicating the increasing demand for financial aid in the higher education sector.
The growing reliance on NSFAS underscores the significance of the fund in ensuring equitable access to education, particularly for students from financially disadvantaged backgrounds. However, budgetary constraints continue to pose serious concerns.
Impact of Budget Cuts on Higher Education
According to the Department of Higher Education and Training, public universities enroll approximately 1,071,715 students annually, yet they failed to meet their third-quarter target of 1,131,000 students due to financial constraints.
The department attributed this shortfall to budget cuts imposed by the National Treasury, which have affected both university funding and student enrolment rates.
These funding challenges have led to concerns about the sustainability of NSFAS and its ability to meet the rising demand for financial assistance. Without adequate financial backing, thousands of students face uncertainty regarding their academic future.
Challenges Facing NSFAS – Leadership and Financial Mismanagement
To address ongoing operational concerns, NSFAS recently appointed Wassem Carrim as its acting CEO. This leadership change is aimed at stabilizing the institution amid numerous challenges, including allegations of financial mismanagement and student protests over delayed funding.
Students across the country have voiced their frustrations regarding delayed NSFAS allocations, which have resulted in some being unable to register for their academic programs. The lack of timely financial support has significantly disrupted the academic calendar, leading to protests at multiple institutions.
Student Protests and the Fight for Funding
In February 2025, students from the University of the Free State (UFS) staged protests over NSFAS registration and funding delays. Student Representative Council (SRC) President Pfarelo Maphangule reported that 200 students were unable to register due to outstanding tuition fees, while others had yet to receive their expected financial allocations.
The frustration among students is further compounded by administrative inefficiencies and poor record-keeping within the higher education system. These issues have sparked nationwide debates about the need for better transparency and accountability within NSFAS.
SIU Investigation Recovering Lost Funds
The Special Investigating Unit (SIU), responsible for probing financial irregularities in government institutions, revealed on 14 February 2025 that it had successfully recovered R2 billion in misallocated NSFAS funds. Additionally, investigators identified approximately 40,000 improper recipients who had received funds they were not eligible for.
SIU Chief Operating Officer (COO) Leonard Lekgetho highlighted severe deficiencies in NSFAS record-keeping, particularly at TVET colleges. He expressed concerns that data management within NSFAS and tertiary institutions was inadequate, making it difficult to track the proper allocation of funds.
“There is a lack of clear accountability regarding how funds are distributed to student accounts,” Lekgetho stated. This has raised concerns about the efficiency of NSFAS disbursements and the need for an improved financial management system.
Reform and Sustainability
The increasing demand for NSFAS funding, coupled with budget constraints and administrative inefficiencies, has led to calls for urgent reforms within the system. Stakeholders in the higher education sector emphasize the need for:
- Improved financial management and transparency
- Timely disbursement of funds to students
- Better record-keeping and tracking of fund allocation
- Increased government support and budget reallocation
With thousands of students relying on NSFAS bursaries, ensuring a stable, transparent, and well-funded financial aid system is crucial for the future of South Africa’s higher education sector. If NSFAS continues to face financial instability, many deserving students may be left without access to education, further deepening socio-economic inequalities in the country.
Conclusion
The NSFAS financial aid scheme remains a lifeline for many South African students pursuing higher education. However, budget constraints, mismanagement allegations, and delayed disbursements threaten its effectiveness. Addressing these challenges is essential to safeguarding the academic aspirations of thousands of young South Africans.
