By Johnathan Paoli and Thebe Mabanga
National Student Financial Aid Scheme (NSFAS) acting CEO Waseem Carrim says the entity has entered a “new era of stability, governance reform and operational rebuilding” after years of turbulence, delays and governance failures that shook confidence across the higher education sector.
In an exclusive interview with Inside Education, Carrim detailed a far-reaching reform plan — from leadership stabilisation and decentralisation to accommodation regulation, debt recovery, and NSFAS’s R69.9-billion budget for the 2025/26 financial
year. His comments come as the scheme faces mounting pressure, including a R10.6-billion funding shortfall and rising demand for financial aid.
Carrim said NSFAS is “turning a corner” following prolonged instability marked by delayed payments, fraud scandals and administrative backlogs.
The appointment of a new board chairperson, Dr Mugwena Maluleke, and the filling of several critical senior posts represent what he calls “strategic, deliberate and necessary” interventions.
“The appointments were guided by a strategic focus on strengthening governance, enhancing operational efficiency, and restoring public trust,” Carrim said.
“Stabilising leadership and filling critical vacancies are essential to ensuring accountability and driving strategic reforms.”
He added that NSFAS prioritised leaders with strong backgrounds in public finance, governance and higher education.
These appointments, he said, will enable NSFAS to “operate more transparently, deliver on its mandate efficiently, and rebuild stakeholder confidence”.
One of the most consequential changes underway is the decentralisation of NSFAS operations to all 25 universities and TVET colleges.
For the first time in NSFAS’s history, core functions such as student registration, bursary administration and accommodation support will be handled by NSFAS offices located on campuses.
“The decentralisation initiative is driven by the need to enhance responsiveness, efficiency and localised support for students,” Carrim said.
On-site staff will speed up processing, reduce bottlenecks and offer direct assistance to students, landlords and administrators — especially during the busy registration season.
NSFAS is also preparing to relocate its head office from Cape Town to Johannesburg to improve coordination with government departments and institutions.
“The move aims to position NSFAS closer to key partners, enhance accessibility and strengthen stakeholder engagement,” Carrim said.
The relocation is expected to reduce long-term operational costs and improve service delivery.
Student accommodation — plagued by delayed payments, accreditation disputes and quality concerns — remains a major pressure point.
Carrim said NSFAS has taken “significant steps” to stabilise this function ahead of the 2026 academic year.
These include comprehensive audits of accredited accommodation, strengthened verification processes and the development of new monitoring systems.
A student accommodation protocol was released for public comment in 2025, setting new regulatory standards.
“Significant steps have been taken to bring landlord payments under control and prevent mass evictions of students,” he said.
However, Carrim acknowledged that the crisis was partly “self-inflicted”.
NSFAS assumed responsibility for accommodation from institutions even though it lacked property-management expertise.
He argued that a national accommodation policy, aligned to uniform standards and backed by DHET investment, is required.
He pointed to PRASA’s new 700-bed Braamfontein residence as an example of the type of infrastructure needed.
Responding to questions on historical failures, Carrim outlined systemic reforms to address fraud, backlogs and internal control weaknesses.
These include ICT system overhauls, strengthened compliance units, enhanced oversight mechanisms and
improved payment turnaround times.
“Early signs of progress include greater stakeholder engagement and more frequent public reporting,” he said.
Dedicated liaison units have been set up to respond to accommodation disputes, while direct-payment systems are being upgraded to
provide real-time transparency.
NSFAS continues to face severe financial pressure. In August, the scheme announced a R10.6-billion shortfall for university funding.
The shortfall was driven by increased bachelor passes, rising cost-of-living pressures that widen the pool of eligible applicants, and real-term reductions in state resources.
Government subsequently reprioritised R13.3 billion within DHET’s budget to fund 34,000 students with blocked registrations and 15,000 second-semester applicants.
NSFAS said this reprioritisation also enabled it to settle outstanding accommodation payments, marking “a significant moment in the stabilisation of NSFAS for the 2025 academic year”.
Demand for NSFAS continues to surge.
Of the 893,853 applications received for 2026, 85% were first-time applicants, including 520,544 SASSA beneficiaries.
Young women made up 66.45% of applicants.
DHET’s new enrolment plans will see university numbers rise from 1.07 million in 2023 to 1.18 million by 2030 — growth that will place even more pressure on NSFAS’s budget.
NSFAS will manage R69.9 billion in 2025/26, including R719.6 million for administration and R950 million for loan funding.
The remainder will support bursaries, accommodation and system upgrades.
Carrim said that while the budget is substantial, “we remain committed to advocating for increased funding to meet growing demand”.
Historical debt remains a major challenge.
NSFAS is owed R45.9 billion by 841,879 debtors, some dating back to 1991 when the scheme operated as TEFSA.
NSFAS is procuring a new loan-management system and intensifying debt recovery.
“Where debtors are employed and not making repayments, we initiate recovery processes, which may include external debt collectors or legal action,” he said.
The long-term strategy, he added, will balance financial sustainability with fairness.
Carrim also noted that major policy shifts — such as the introduction of the “missing middle” loan and changes to accommodation rules — were implemented without giving NSFAS time to adapt its systems, contributing to instability.
NSFAS has supported 7.8 million students since its inception and disbursed R51.6 billion in the last financial year alone.
Carrim highlighted that South Africa now produces four times more black African graduates than in 1994 — evidence, he said,
of NSFAS’s role in expanding access.
In a recent interview on the Palatable Politics podcast, he expressed pride in NSFAS’s work, noting that the scheme supports about 900,000 students at any given time.
While graduate unemployment remains a concern, joblessness among graduates is significantly lower than among those without degrees.
“This progress underscores the importance of stabilising and strengthening NSFAS,” Carrim said.
INSIDE EDUCATION
