PRETORIA, Gauteng — The escalating NSFAS funding crisis in South Africa has prompted the South African Union of Students (SAUS) to formally demand that the National Student Financial Aid Scheme be placed under the direct supervision of the National Treasury. SAUS President Siyabonga Nkambako warns that the current R29 billion shortfall threatens the daily operations of public universities and leaves thousands of students vulnerable to sudden defunding and eviction.
According to recent reports, the National Student Financial Aid Scheme (NSFAS) currently owes public higher education institutions approximately 10.5 billion rand in outstanding tuition fees. When factoring in unpaid student accommodation costs, the total debt owed to institutions of higher learning surges to around 29 billion rand. This severe financial shortfall is actively threatening daily university operations and academic programs, raising urgent concerns about the direct impact on vulnerable students.
The financial turmoil coincides with expectations that the Public Protector will release a report investigating allegations of maladministration within NSFAS. Nkambako described the situation as a clear indication of systematic failures within the scheme, compounded by weak oversight from the Department of Higher Education and Training.
“Within a period of 10 years, we have had quite a number of CEOs, administrators, and acting CEOs,” Nkambako stated. He argued that each new appointee brings different ideas and “ridiculous demands,” treating the institution like a “cash cow” rather than stabilizing it. This high turnover has perpetuated instability, leading to a scenario where NSFAS advisers capable of claiming money were paid, while students residing in accommodations were left without meal allowances and facing eviction by landlords.
The human cost of the NSFAS funding crisis is already materializing. Nkambako highlighted that approximately 12,000 students were recently on the verge of being defunded pending “gap investigations”—cases that remain incomplete. Consequently, some students have been unable to return for the second semester, while those who remain on campus face severe food insecurity and the threat of expulsion due to accumulating institutional debts.
To resolve the systemic dysfunction, the South African Union of Students is advocating for a structural shift. Nkambako proposed that NSFAS be moved under the National Treasury, which could accurately determine the required funding allocations for students nationwide. Crucially, this move would allow for the implementation of strict policies and robust consequence management.
“People are able to make mistakes, and once they have made mistakes, they are able to be interchanged to different departments,” Nkambako explained. He emphasized that officials responsible for wrongdoings within the national financial aid scheme should be dismissed, punished, or blacklisted from future employment in any government institution. Furthermore, he stressed the need for mechanisms to hold ministers and Department of Higher Education and Training officials accountable for the ongoing crisis.
The union also criticized the decision by the Minister of Higher Education, Buti Manamela, to place NSFAS under administration without direct consultation with student stakeholders. Nkambako noted that earlier in the year, the scheme experienced absolute stability, with appeals responded to on time and funding securely distributed, before the administrative changes were imposed.
In response to the ongoing defunding threats, SAUS has escalated its response. The union is currently engaging legal counsel to take NSFAS to court. Nkambako asserted that administrative law does not permit the scheme to defund a student without providing a reasonable, documented justification, especially when students have signed binding funding agreements.
As the sector awaits the Public Protector’s findings, the South African Union of Students maintains that placing NSFAS under the National Treasury, coupled with strict consequence management and meaningful stakeholder consultation, remains the most viable solution to safeguard the future of higher education funding in South Africa.
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