The National Student Financial Aid Scheme in South Africa: A Lifeline for Millions Facing Challenges – Here’s Why

South Africa’s National Student Financial Aid Scheme (NSFAS) is facing a crisis as the board has been dissolved and the organization placed under administration due to the non-payment of student allowances. Thandi Lewin, a higher education scholar, shed light on NSFAS’s history, mandate, and current challenges.

NSFAS, established in 1999, provides financial aid to students in public universities and technical colleges. It has supported over 5 million beneficiaries, with 826,084 students funded in 2021. However, the scheme faces challenges such as administrative inefficiencies and an unstable policy environment.

Recent ill-conceived administrative changes, including the introduction of direct payments, led to chaos for students and institutions. The CEO was fired for tender irregularities, and the former board chair is under investigation for kickbacks. As a result, NSFAS is once again under administration.

Immediate steps must be taken to address capacity and system issues, provide accurate funding decisions, and ensure timely disbursement. Collaboration between NSFAS, institutions, and the Department of Higher Education is crucial for success. Failure to resolve these challenges could negatively impact young people and undermine the purpose of public funding for education.