NSFAS is due a major overhaul, but consensus ends there
A scheme built to open the door to higher education has grown into the country’s largest social grant. Everyone agrees it can’t go on in its current form – but where to next?
The National Student Financial Aid Scheme (NSFAS), which has provided funding for higher education since the mid-1990s, is in urgent need of reformation. While there is general agreement that changes are necessary, there is no consensus on the specific approach. Professor of higher education research at Rhodes University, Sioux McKenna, suggests that NSFAS repayments should be handled by the South African Revenue Service (SARS) and adjusted based on income levels.
However, the corruption scandal surrounding NSFAS must first be addressed before any repayment system could be accepted by the public. The scheme has been under three different administrations in the last eight years, with each period marked by governance failures and systemic maladministration. Investigations found that over 40,000 students were improperly funded, totaling R5.1-billion, as well as numerous instances where students received funds they were not entitled to.
Parliament has summoned four NSFAS intermediaries for alleged earnings of R559-million from outsourced payment and accreditation functions. Despite these issues, NSFAS is set to spend R54.3-billion in the 2026/27 fiscal year, surpassing the budget allocated to the entire public university system. This has led to a debate on whether NSFAS should be abolished, its functions decentralized to universities, or if it should remain centralized but with substantial improvements.
The consensus is that change is needed, but the specifics of how to implement it remain divided into three main camps.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
