NSFAS Holds R4.4 Billion Surplus While Students Struggle With Debt
NSFAS Holds R4.4 Billion Surplus While Students Struggle With Debt. The National Student Financial Aid Scheme (NSFAS) is facing mounting criticism after revelations that it holds a massive R4.4 billion surplus while thousands of students in South Africa are drowning in debt and facing financial exclusion. The discovery has sparked nationwide student protests, with calls for the surplus to be redirected toward clearing outstanding tuition fees and easing financial burdens.
Student Protests Over Financial Exclusion
For over a week, university students across South Africa have taken to the streets to protest financial exclusion caused by unpaid tuition fees. Many students have been unable to register for the 2025 academic year due to outstanding debts, while others struggle to afford accommodation due to NSFAS’s allowance cap. Some have even resorted to hunger strikes, demanding urgent government intervention to address the crisis.
Higher Education Minister Responds to Crisis
Higher Education Minister Nobuhle Nkabane has acknowledged the gravity of the situation and assured students that the government is actively working with NSFAS and student organizations 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%.”
Additionally, the government has announced a significant increase in allowances for Technical and Vocational Education and Training (TVET) college students, raising the annual allowance from R10,000 to R14,600—a 46% increase. However, many students believe these measures are insufficient and continue to demand that the NSFAS surplus be used to clear existing student debt rather than being allocated for future investments.
NSFAS Under Scrutiny for Administrative Failures
NSFAS Administrator Freeman Nomvalo has admitted to ongoing administrative challenges, 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.
NSFAS is reportedly working on refining its processes to ensure smoother operations in 2025. Nomvalo also confirmed that delays in allowance payments and student housing allocations, caused by the bursary scheme’s accreditation system are being addressed.
New NSFAS Board to Tackle Crisis
In response to growing concerns over the scheme’s inefficiencies, a new NSFAS board was recently appointed. This follows the dismissal of the previous board by former Higher Education Minister Blade Nzimande due to ongoing administrative failures, including delayed student allowances.
Minister Nkabane expressed confidence in the new board, stating that it will play a critical role in resolving 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 Persists
Despite government reassurances, student organizations remain frustrated, arguing that the NSFAS surplus should immediately be used to alleviate current financial burdens. Many students have called for a more transparent and efficient funding model to prevent similar crises in the future.
As protests continue, all eyes remain on whether the government and NSFAS will take decisive action to ensure that financial constraints do not prevent students from accessing higher education. The fate of thousands of students now hinges on whether NSFAS can transition from crisis mode to providing real financial relief.
Conclusion
The NSFAS surplus issue highlights deeper systemic problems in student financial aid management. While the government has made some adjustments, students demand more immediate and effective solutions. Without urgent action, financial exclusion will continue to be a major barrier to higher education in South Africa.
