By Johnathan Paoli
The National Student Financial Aid Scheme (NSFAS) has provided an update on the student funding process for the 2025 academic year, acknowledging ongoing instability within the system and the difficulties students continue to face.
The briefing to the Select Committee on Education, Science, and Creative Industries highlighted critical issues such as delays in disbursements, defunded students and challenges in student accommodation, while also outlining the new board’s attempts to restore governance and efficiency.
For the 2025 academic year, NSFAS received a total of 1.1 million applications, with 607,564 students provisionally funded and 243,690 fully funded after completing registration.
However, over 97,000 applications were rejected, and 75,294 students submitted appeals, creating a backlog that must be processed before the 31 March deadline.
Despite efforts to streamline the process, students have continued to experience delays in receiving funding and allowances, particularly at universities and TVET colleges.
While R3.7 billion was allocated to universities upfront and R641 million to TVET colleges, some institutions have been slow in distributing funds to students.
NSFAS board chairperson Karen Stander noted that while direct payments were made to TVET students, some institutions received funds before disbursing them, leading to delays.
NSFAS acting CEO Waseem Carrim defended the scheme against criticism, arguing that late payments were often due to university inefficiencies.
“We have made two upfront payments, but the money has not been passed on to students due to institutional challenges,” he said.
He described it as “irresponsible journalism” to blame NSFAS for failures outside its control.
The student accommodation crisis remains one of the biggest challenges facing NSFAS and students.
Many students, especially in rural and non-metro areas, struggle to find affordable, accredited housing.
Stander said that some private accommodation providers outside NSFAS’s portal were the biggest sources of complaints.
Carrim described student housing as a “structural problem” beyond NSFAS’s direct control, requiring collaboration across government, universities and private stakeholders.
He suggested that resolving the issue could be an opportunity for economic growth.
“If we can map out what future demand looks like, we can stimulate the construction sector to provide sufficient student accommodation,” Carrim said.
Adding to student frustrations, service providers have been accused of overcharging for accommodation, prompting NSFAS to conduct an accommodation audit.
However, Stander admitted that resolving this issue was complex and beyond NSFAS’s authority alone.
On the defunding of students due to eligibility changes or administrative errors, the scheme did not provide a full breakdown of affected students but assured the committee that funding gaps and eligibility issues were under review.
Additionally, students from Unisa and other distance-learning institutions have raised concerns about disparities in allowances.
Carrim acknowledged this, stating that NSFAS was considering a revised allowance structure to account for students living at home versus those needing full-time accommodation.
NSFAS has also been plagued by allegations of mismanagement and corruption.
The Special Investigating Unit has recovered R2.8 billion in fraudulent payments, with R2 billion already returned and R800 million still in the process of recovery.
Court cases regarding missing funds are ongoing.
The NSFAS board is also reviewing administrative inefficiencies, with a particular focus on decentralisation and regionalisation to improve service delivery.
Carrim acknowledged a “large degree of instability” at NSFAS due to frequent leadership changes, with the scheme having been placed under administration twice in recent years.
Higher Education and Training deputy director-general Marcia Socikwa acknowledged past mistakes in the administration of NSFAS.
“We accept it was unwise to make that move, and in the new modelling, we encourage the board to consider a cost-effective way of disbursement so that the middleman is not a beneficiary to the detriment of our students,” she said.
Despite these setbacks, the NSFAS leadership insists that progress is being made to stabilise the scheme and ensure students receive their funding efficiently.
Key priorities over the next 12 months include fixing governance structures, upgrading systems to streamline funding and disbursement, and clarifying responsibilities between NSFAS and higher education institutions to avoid unnecessary delays.
“If we can sort out broader government frameworks, we can position the fund in the 2026 academic year to be more student-cantered and responsive to their needs,” the acting CEO said.
NSFAS has also encouraged students to report collusion and corruption in the funding process, vowing to act against any wrongdoing.
While the briefing highlighted the deep-rooted challenges in student funding, including administrative failures, accommodation shortages and governance instability, both Carrim and Stander said NSFAS remained committed to resolving outstanding appeals and disbursements as quickly as possible in light of the daily struggles of students.
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