Over 53,000 students applied for NSFAS loans to cover the needs of the middle class in 2026, but only 3,102 candidates were deemed to meet the criteria. Minister of Higher Education, Buti Manamela, acknowledged that too few applicants are progressing through the process to receive actual funding.
Manamela presented this data to the National Council of Provinces (NCOP) on Thursday, responding to questions about government efforts to support students whose income exceeds the NSFAS scholarship threshold but who cannot afford higher education.
African National Congress (ANC) Deputy Malesela Mokwele asked about the progress in financing students from families with incomes above R350,000 but below R600,000 per annum. Manamela stated that the government launched the NSFAS loan scheme in 2024 to expand support for this income group.
Deputies questioned Minister of Higher Education Buti Manamela about delays in financing through NSFAS missing-middle, as the government admitted that eligible applicants are not converting into loans quickly enough.
Initially, the scheme was capitalized at R3.8 billion, including R1.5 billion from the National Skills Fund and R2.3 billion from sector learning and development bodies. In 2025, NSFAS received 10,186 loan applications and approved 2,686.
For 2026, the number of applications increased to 53,575, of which 3,102 applicants were assessed as suitable. Manamela warned that the process involves separate stages: application submission, eligibility decision, signing of the loan agreement, and actual disbursement of funds.
He noted: 'The increase in applications is encouraging, but converting eligible applicants into completed and disbursed loans remains too low and slow.' He explained that implementation has suffered due to unsubmitted institutional memoranda, finalization of loan agreement forms, qualification and document verification, and timely submission of institutional registration information.
Although several institutions have signed the necessary agreements, engagement with remaining institutions is ongoing. Manamela stated that the department and NSFAS are taking corrective actions to finalize outstanding contractual instruments and institutional agreements, reconcile application and payment status from 2024 to 2026, and improve communication with students and institutions.
The department is also reviewing the application process and eligibility criteria to simplify the process for qualified students. Manamela emphasized: 'The government has created a funding tool for the middle class, and demand for it has grown, but it has not yet reached the operational maturity or reach initially intended.' He added that their immediate task is to convert eligibility into actual funding faster while broader work continues on a stable and sustainable student funding model.
Mokwele also raised the issue of the government conducting a feasibility study on the long-term sustainability of higher education funding, especially considering the rising cost of student living and competing needs of middle-class students. Manamela replied that student funding sustainability is under review, and the information before him did not contain a feasibility study after 2017.
Instead, he stated that the government needs to consider a broader funding model that protects scholarship support for poor and working students while improving loans for the middle class. This model must account for financial accessibility, projected growth, real cost of tuition and living, income verification, institutional administrative capacity, as well as fair loan and repayment terms.
Manamela clarified that students meeting NSFAS scholarship criteria should continue to receive support under this scheme. For students who do not fall under standard scholarship criteria, possible options include the NSFAS missing-middle loan, university financial aid, and professional scholarships. He mentioned that the National Skills Fund has allocated approximately R1 billion for students pursuing doctoral and postgraduate degrees.
Democratic Alliance (DA) Deputy Jane Adrians then questioned Manamela on when the government would present a concrete, funded solution for students falling between the NSFAS threshold and the cost of higher education. Adrians noted that the government had recognized the plight of the middle class for years, but thousands of capable students remained outside accessible support.
Manamela reported that the next step would be to submit the matter to the Cabinet, and the government intends to implement elements of a sustainable student funding model starting next year. He noted that the model will take more time to become a student funding system that meets the country's needs, but named 2027 as the main target.
Member of Parliament from Economic Freedom Fighters (EFF) Mamuru Mamuru questioned what steps had been taken to 'completely reorganize' what he called a 'failed debt-inducing loan scheme'. Manamela rejected this characterization of the system as purely credit-oriented student funding model. He stated that nearly 800,000 students attend higher education for free, and the missing-middle loan opened another path for students ineligible for scholarship support. However, Manamela acknowledged that the number of eligible middle-class applicants remains too low, noting that 'this number is too small, 3000.'
