Minister of Higher Education, Bule Thumanamela, announced that the National Student Financial Aid Scheme (NSFAS) has received advance payments totaling 4 billion rands to alleviate financial strain in universities.
These funds arrive as the financial aid scheme continues to face difficulties; the funding deficit is estimated at 15 billion rands due to the increasing number of students requiring financial support.
In a written response to Parliament regarding an inquiry by Inkatha Freedom Party (IFP) member Sanele Zondo about measures being taken by the department to address the deficit, Manamela specified that the Department of Higher Education and Training provided 2 billion rands in September and another 2 billion in October to reduce the burden on higher education institutions.
He noted: 'NSFAS received an advance tranche from DHET to ease cash flow pressure in universities by providing an additional 2 billion rands in both September and October. The Department of Higher Education and Training is engaging with the National Treasury regarding the broader 2026 deficit.'
Negotiations with the Treasury over NSFAS funding
Manamela added that the department is discussing the adjustment of NSFAS's baseline funding with the National Treasury within the Medium Term Expenditure Framework (MTEF), which outlines medium-term government spending plans.
According to him, the department has submitted detailed actuarial models demonstrating how funding should be adjusted to align with the growing number of students applying for financial aid as school graduation numbers increase.
Furthermore, the department is considering expanding credit and blended financing schemes for 'middle-income' students who do not meet NSFAS criteria but cannot afford tuition without assistance. These schemes involve participation from private financial institutions and Sector Education and Training Authorities (SETA).
Other proposals include revising NSFAS eligibility thresholds to improve the distribution of available funds while simultaneously protecting students from the poorest households.
The department is also exploring public-private partnerships to reduce costs associated with student accommodation and infrastructure, which could partially relieve financial pressure on NSFAS.
Commitment to free higher education
He emphasized that the structural financial pressure does not change the Government's fundamental policy regarding free higher education for students from poor and working-class backgrounds.
However, it does require a structural recalibration of timelines and cost projections. Manamela stated: 'If the basic treasury allocations remain limited, the Department will focus on ensuring funding for the most vulnerable students while gradually expanding alternative financing models (such as income-contingent loans) for middle-income categories to maintain structural equity in the sector.'