The student funding model in South Africa is facing serious challenges, raising concerns about the possibility of sustainably expanding the National Student Financial Aid Scheme (NSFAS) without a fundamental change to the higher education financing system.
The Minister of Higher Education and Training, Buti Manamela, warned that the scheme's funding deficit has reached R15 billion and could rise to R33 billion by 2029, once again drawing attention to the sustainability of the current funding model.
Siseko Maposa, director of the consulting firm Surgetower Associates Management Consultancy, noted that this deficit is a result of the funding model growing faster than the state's ability to cover it. He stated that the minister's concerns about the NSFAS funding crisis have been evident for many years.
Maposa believes that the state has created a 'monster'—an unlimited legislative right contradicting a limited budget, sacrificed for populist political expediency. By promising to cover the full cost of tuition for an exponentially growing number of students without a sufficient tax base, the state has effectively provoked an inevitable systemic collapse.
In his view, the problem should not be viewed through the lens of NSFAS administrators or council members, but through the lens of policy itself. He argues that the highest political leadership, namely the Cabinet, is responsible for adopting an unsustainable system.
Professor Linda Meyer, an expert in higher education policy and a medical doctor at Rosebank College, noted that the projected R33 billion deficit by 2029 indicates not temporary cash flow problems, but a structural gap between funding promises and available resources.
Meyer emphasized that South Africa is experiencing both a fiscal and institutional crisis, as NSFAS has repeatedly faced issues with governance, data systems, and financial control. She added that improved administration cannot fund an unmanageable promise, and additional funds directed into a poorly managed system will not reliably reach students.
These problems are exacerbated amid ongoing instability within NSFAS. Earlier this year, the scheme was handed over to management due to concerns over administrative instability, operational failures, financial weaknesses, unresolved appeals, ICT deficiencies, and accommodation issues.
Subsequently, the Pretoria High Court granted a temporary order, suspending the appointment of Administrator Professor Khlengani Mathebula and reinstating the NSFAS council pending further legal proceedings.
Higher education representative Delmeijn Christians advocates for greater decentralization of NSFAS, proposing that universities and TVET colleges take on more responsibility for direct disbursement of funds to students. Christians insists that the projected R33 billion deficit should serve as a reason for an urgent review of the NSFAS Act and student funding administration methods.
Concerns about NSFAS sustainability are not limited to parliament, universities, and policy experts. At the grassroots level, students and communities feel the impact of funding delays and decisions. Community leader and activist Christian Stuart reported that students in areas such as Macassar, Deepfreeze, Firgrove, Sir Lowry’s Pass, and Gustrouw are suffering from funding delays.
Stuart noted that the NSFAS crisis has increased from R2.5 billion to R5 billion, then to R13 billion, and is now projected at R15 billion, with potential growth up to R33 billion. He warned that if the situation continues, children will suffer. Some students waited months for applications to be processed, while others received rejections and were left without funds to continue their studies.
