NSFAS faces R15 billion shortfall: Implications for South African students

South Africa's National Student Financial Aid Scheme (NSFAS) is facing a funding shortfall of approximately R15 billion, which could force the government to reconsider its free higher education policy. According to Higher Education Minister Buti Manamela, the shortfall has grown from R2.5 billion in 2018 to R15 billion in recent years, as the demand for higher education continues to rise while government funding does not keep pace.

NSFAS has consistently experienced shortfalls, with the latest estimate reaching R15 billion for the 2026 academic year, supporting over 660,000 students. The scheme has been instrumental in providing free higher education to students from low-income backgrounds by covering tuition fees and study-related costs. However, the minister warned that if the government cannot find additional funds, a reevaluation of the "free higher education" approach may be necessary.

Manamela noted that the government's funding allocation for NSFAS is fixed within the Medium-Term Expenditure Framework, while the number of students needing financial support continues to increase. He emphasized that while the number of students qualifying for funding can't be controlled, the available money to the scheme is insufficient.

The ministry is working on policy proposals to address the funding gap, but Finance Minister Enoch Godongwana has raised concerns about NSFAS's administration and spending habits, questioning its value and suggesting that the R700 million spent on its administration could instead fund 9,000 additional students.