NSFAS is facing a major financial problem, with Higher Education Minister Buti Manamela warning that the scheme could now be short by around R15 billion.
Speaking to Parliament’s Portfolio Committee on Higher Education on Wednesday, Manamela said the shortfall has grown significantly from about R2.5 billion in 2018 to R13.5 billion last year, and is now estimated at R15 billion.
The main problem is that more students are qualifying for funding, while the money available to NSFAS has not increased at the same pace.
As more young people move from Grade 12 into higher education, the pressure on the student funding system continues to grow.
Manamela says government needs to seriously consider where the extra money will come from to maintain its promise of fee-free higher education.
He described the financial position at NSFAS as “the most significant, and I think unresolved issue”, while warning that the current funding model is putting pressure on the system.
The minister also said government has “made a commitment to South Africans that we will provide fee-free higher education”, meaning the funding gap needs to be addressed.
NSFAS is also trying to fix several problems while under administration, including:
- Poor data and IT systems
- Accommodation payments
- Student appeals
- Financial controls
- Governance
Student accommodation remains one of the biggest concerns, with tens of thousands of students currently recorded as living in non-accredited accommodation.
Manamela says students should not be punished due to shortages, while NSFAS needs better systems to verify accommodation and process payments.
The minister says 2027 will be an important test for NSFAS, with applications, funding, appeals, and accommodation as key areas needing improvement.
Ultimately, the goal is to rebuild NSFAS into a stable organization that can properly support students without repeatedly requiring government intervention.
Source: eNCA.
