NSFAS under administration, but students say the crisis is already here

More than a week after the government placed the National Student Financial Aid Scheme (NSFAS) under administration, students at Stellenbosch University (SU) say uncertainty around funding, allowances and unresolved appeals continues to affect their daily lives.

Student leaders say the focus should now shift from the political decision itself to whether the intervention will improve conditions for students who rely on NSFAS to study, eat and remain in university. “Whether one views the intervention as necessary or questionable, the immediate priority must be the protection of students,” said Stellenbosch University Student Representative Council (SRC) Treasurer-General Sinawo Sangovana.

Higher Education and Training Minister Buti Manamela placed NSFAS under administration earlier this month. This decision was announced on the 4th of May, with the Minister citing deep governance alongside financial and operational failure within the scheme.

Higher education and Training Minister, Buti Manamela at a press briefing about NSFAS being placed under administration.

Higher Education and Training Minister Buti Manamela briefed the media about the National Financial Aid Scheme (NSFAS) being placed under administration on the 4th of May, making this the third time since 2018 that the government has intervened in the scheme. PHOTO: Supplied/Business Day/Freddy Mavunda 

This move gives control of NSFAS to an appointed administrator, Professor Hlengani Mathebula, who will take over operations to stabilise the institution, address governance failures, and ensure it functions effectively.

The decision follows months of instability at the government bursary scheme, which supports hundreds of thousands of university and Technical and Vocational Education and Training (TVET) college students.

What this means for students now

According to a statement by Manamela on the 4th of May, placing NSFAS under administration does not stop funding, but it signals that the system responsible for distributing that funding is not functioning properly. 

Speaking at a press briefing on the 4th of May in Johannesburg, Manamela said, “The administration is not intended to disrupt NSFAS operations. Student funding will continue, allowances will continue, appeals processes will continue, and universities and TVET colleges will continue engaging NSFAS operationally. The purpose of the intervention is precisely to protect continuity and restore confidence.” 

Stellenbosch University campus. Students sitting on the stairs of the library.

Thousands of students in South Africa depend on the National Student Financial Aid Scheme (NSFAS) each year to access higher education. PHOTO: Supplied/ Stellenbosch University

In practical terms, students should still receive tuition payments, allowances and accommodation support. However, the administration process also highlights ongoing issues and risks such as delays in payments, errors in funding status, and slow resolution of appeals which may continue while the system is being restructured.

A system already under strain

The statement also highlighted that governance concerns at NSFAS have intensified in recent months, as scrutiny over its financial management systems and administrative capacity continued to grow.

Board instability and internal disputes further weakened the institution, limiting its ability to make decisions and respond to ongoing challenges. The government intervened by placing NSFAS under administration to restore accountability and stabilise operations.

However, student leaders at SU say the intervention must be done effectively so as to not worsen existing problems. “These are not minor administrative issues, they directly affect whether poor and working-class students are able to register, receive allowances, access accommodation, buy food, attend class, and continue their studies with dignity,” said Sinawo Sangovana.

Sangovana added that the South African Union of Students (SAUS), which serve as the national student union responsible for all university student representative councils in South African public universities, has raised concerns about whether the decision followed proper consultation and due process.

Students already feeling the impact

For NSFAS-funded students at SU, the announcement has brought more anxiety than reassurance. Students say funding challenges have already affected them long before the administration announcement. “I was approved for NSFAS in 2025, but when I arrived at Stellenbosch, I was told the funding had already been paid in 2024 while I was still in matric,” said Lusanda Mbambo, a second-year BAccounting student.

“That raised serious concerns for me, including fears of possible fraud under my name.” Mbambo said she now worries that NSFAS may not fully cover her funding this year. “If NSFAS doesn’t pay everything, I might not be able to continue my education because I won’t be able to pay off the debt,” she said.

Other students say ongoing delays and poor communication from NSFAS continue to affect their daily lives. “NSFAS covers almost everything for me, tuition, accommodation and daily expenses. Without it, I wouldn’t be able to study,” said Kedibone Serifi, a second-year humanities student.

“I’ve had ongoing issues with delays and a lack of clear communication. Right now, I’m in the dark about my funding and have been since January.” Serifi said any disruption to payments would have immediate consequences. “It would mean struggling to afford food, rent and transport, which directly impacts my ability to focus on my studies,” she added. 

Pressure on a critical system

NSFAS plays a key role in expanding access to higher education in South Africa, particularly for students from low-income households. For many, it remains the only way to access and remain in university. “My biggest concern is that NSFAS might not be able to pay for my studies, which could force many students to drop out,” said Sadé Anjolique George, a third-year BA humanities student. “A lot of students rely entirely on NSFAS, not just for fees, but for food and basic necessities,” she added. 

The National Student Financial Aid Scheme is responsible for providing financial aid to eligible students at public universities and TVET colleges, covering tuition, accommodation, and living expenses.

The National Student Financial Aid Scheme is responsible for providing financial aid to eligible students at public universities and TVET colleges, covering tuition, accommodation, and living expenses. Supplied/NSFAS website 

As the administration process is under way, student leaders say its success will depend on whether it delivers real improvements. “The focus must be on restoring confidence and making sure that students experience real improvements on the ground,” Sangovana said.

Professor Hlengani Mathebula did not respond to requests for comment at the time of publication.