The National Student Financial Aid Scheme (NSFAS) is under fire after revelations that it holds a staggering R4.4 billion surplus while thousands of students face financial exclusion due to mounting university debt.
The revelation has fueled ongoing student protests, with many demanding that the surplus be redirected to clear outstanding fees and assist those in dire financial need.
For the past week, university students across South Africa have taken to the streets, highlighting the crisis of financial exclusion and student debt.
Many students have been unable to register for the 2025 academic year due to unpaid tuition fees, while others struggle to afford accommodation due to NSFAS’s allowance cap. Some have even resorted to hunger strikes, demanding urgent intervention from the Department of Higher Education and Training.
Minister responds to protests and NSFAS crisis
Higher Education Minister, Nobuhle Nkabane, acknowledged the dire situation, confirming that her department, along with NSFAS and student organizations, is actively working to find solutions.
“We have considered the cost of living, which is very high, as well as some of the socio-economic challenges that our people are facing every day,” Nkabane stated. “So we have decided, working closely with USAf ( Universities South Africa) and NSFAS as well as student formations, to adjust student allowances for this financial year to 4%.”
She also announced a significant increase in allowances for Technical and Vocational Education and Training (TVET) college students, from R10,000 per annum to R14,600—marking a 46% increase.
“We are responding and we are deliberating our approach to respond to their needs,” the Minister added.
Despite these increases, many students argue that the NSFAS surplus should be used to clear existing student debt rather than being “invested” for future use.
NSFAS administration under scrutiny
NSFAS Administrator Freeman Nomvalo admitted to administrative issues within the funding scheme, particularly in the accommodation sector.
“Problems relating to onboarding and so on, those types of problems we are working on ensuring are resolved as quickly as possible so that students can focus their attention on learning,” Nomvalo said.
He emphasised that NSFAS is working on processes to ensure smoother operations for 2025, stating, “We’re putting processes in place to make sure that for the 2025 financial year, save for the legacy issues that we brought from last year, this year should move smoothly in terms of those importing processes.”
Nomvalo also confirmed that NSFAS is addressing delays in allowance payments and student housing allocations caused by the bursary scheme’s accreditation system.
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New NSFAS board appointed
Last week, a new NSFAS board was appointed after former Higher Education Minister Blade Nzimande dismissed the previous board due to ongoing administrative failures, including unpaid student allowances.
Minister Nkabane expressed confidence in the newly appointed board, stating that it will play a crucial role in solving the financial aid crisis.
Nomvalo echoed this sentiment but urged patience, saying, “Let’s give the board time to settle in, deal with the issues the way they feel comfortable to deal with them. We can’t judge them in advance.”
Student debt crisis continues
Despite the government’s assurances, student organizations remain frustrated, demanding that the NSFAS surplus be allocated to relieve current financial burdens. Many argue that the financial aid scheme should adopt a more transparent and efficient funding model to prevent similar crises in the future.
As protests continue, the focus remains on whether the government and NSFAS will take decisive action to ensure that no student is denied access to education due to financial constraints.
