NSFAS faces scrutiny as 40 000 students improperly funded, says Public Protector

A recent investigation by South Africa's Public Protector has revealed that the National Students Financial Aid Scheme (NSFAS) improperly funded approximately 40,000 students across 76 higher education institutions. The investigation, which examined NSFAS, the Department of Higher Education and Training (DHET), and other relevant stakeholders, found systemic deficiencies in the administration and oversight of student financial aid.

These deficiencies resulted in recoveries exceeding R2 billion. The Public Protector's office identified issues such as inadequate access to funding, inefficiencies in existing funding mechanisms, challenges in student accommodation, and delays in the disbursement of funding allowances. The investigation also highlighted persistent governance instability, administrative weaknesses, and inadequate systems within NSFAS, which have hampered its ability to fulfill its statutory mandate effectively.

Students have experienced recurring delays in funding decisions, appeal outcomes, and allowance payments, leading to issues such as food insecurity, housing instability, and exposure to unsafe living conditions. Additionally, the investigation found problems with NSFAS's accessibility and communication with students, as the scheme was unable to resolve 80% of queries received through its contact centre, often having to escalate them to internal units.

Despite receiving R3 billion in capitalization from 2024 to 2027 to support students in the "missing middle," NSFAS was unable to implement this funding due to the need for a new loan system. Furthermore, the investigation revealed that progress in implementing recommendations from the 2022 Ministerial Task Team report on student funding policy had been inadequate.

The delay in addressing these recommendations has allowed systemic weaknesses to persist, continuing to prejudice students. The investigation also found that NSFAS's Close-Out Project, intended to reconcile financial data between NSFAS and tertiary institutions, remained incomplete, contributing to further prejudice for students whose qualifications remained withheld due to unresolved tuition accounts.