The National Student Financial Aid Scheme (NSFAS), a lifeline for thousands of South African students, is under fire again. On Friday the Special Investigating Unit (SIU) revealed it had recovered a staggering R1.7 billion in misallocated funds. The funds, unaccounted for between 2016 and 2021, shine a glaring spotlight on NSFAS’s broken financial systems and leave us wondering: how can it truly support South African students if it can’t get its own house in order?
From unpaid allowances to the billions recovered unallocated funds, NSFAS’s issues are making headlines for all the wrong reasons, even after the government entity was placed under administration in April this year following the dissolution of the entity’s board.
President Cyril Ramaphosa gave the green light for the SIU investigation in 2022, and it didn’t take long to uncover the root of the problem: NSFAS didn’t have proper systems in place to match the money it handed out with what registered students actually needed.
These unallocated amounts, often caused by students receiving multiple funding sources or changes in study costs, were left sitting at various institutions.
According to SIU spokesperson Kaizer Kganyago, “The investigation revealed NSFAS failed to design and implement controls that would ensure annual reconciliation between the funds disbursed to institutions and the funded list of registered students.”
Among the institutions returning millions in unallocated funds are:
- University of Witwatersrand (Wits): R450 million
- University of the Free State (UFS): R438 million
- University of Pretoria (UP): R400 million
- University of Johannesburg (UJ): R312 million
- University of Fort Hare (UFH): R278 million
- University of Zululand (UZ): R58 million
While the SIU’s recovery of funds is a step toward accountability, it does little to address the day-to-day challenges faced by students who depend on NSFAS for tuition, accommodation, and basic living allowances.
The revelations come on the heels of the April 2024 dissolution of the NSFAS board and the appointment of Freeman Nomvalo, former CEO of the South African Institute of Chartered Accountants, as administrator. Experts warn, however, that structural reforms are needed to restore NSFAS’s credibility and effectiveness.
“NSFAS faces unpaid loans from graduates, reduced funding for current students, and an ongoing corruption crisis,” said Sakhiseni Joseph Yende, a Postdoctoral Fellow at the University of the Western Cape. “These issues hamper its ability to provide essential financial support, underscoring the need for immediate reforms.”
To curb further financial mismanagement, NSFAS cut ties with its direct payment service providers in May this year. These providers had left thousands of students stranded when their allowances failed to come through. However, this offers little comfort to students still grappling with unpaid stipends and administrative failures.
Amid the financial chaos, the government is urging eligible students to apply for NSFAS funding before the December 15 deadline. Higher Education and Training Deputy Minister Buti Manamela stressed that the deadline would not be extended.
“Those who will be completing their Grade 12 this year, and they want to study at a university or a TVET college, and their household income is less than R350,000, can apply for a free bursary at NSFAS,” Manamela said during a visit to Pimville, Soweto.
With over 60% of new applications already approved, NSFAS’s efforts to increase awareness have yielded results. But the unresolved systemic issues threaten to overshadow progress, leaving students and stakeholders anxious about the future.
While the recovery of R1.7 billion offers a glimmer of accountability, it also serves as a stark reminder of the work still needed to transform NSFAS into a reliable safety net for South Africa’s students.
Emma is a freshly graduated Journalist from Stellenbosch University, who also holds an Honours in history. She joined the explain team, eager to provide thorough and truthful information and connect with her generation.
