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NSFAS Funding Crisis: R10.6bn Budget Shortfall for 2025 Academic Year

Strategic Insights

— 1 min read

The National Student Financial Aid Scheme (NSFAS) is facing a significant funding crisis, with a R10.6 billion budget shortfall for the 2025 academic year. This shortfall, coupled with an increase in student eligibility and declining state resources, has resulted in some students being unable to register for the second semester. The crisis has left students in financial limbo, and the National Convenor of Mayibuye iAfrika Youth League, Keamogetswe Masike, warns that the budget shortfalls will have a severe impact on students in 2026.

Key Takeaways:

  • The NSFAS faces a R10.6 billion budget shortfall for the 2025 academic year, despite having a R39 billion allocation for the university sector.
  • The shortfall is attributed to an increase in student eligibility, the ongoing cost-of-living crisis, and declining state resources.
  • The NSFAS has disbursed almost 73% of the allocated funding, but still faces a budget shortfall.
  • In the TVET sector, the NSFAS has a funding shortfall of R1.6 billion.
  • The scheme owes R45 billion to students who took loans before 2018.
  • The NSFAS plans to relocate to Pretoria and is facing a complex legal process with the Special Investigating Unit (SIU) regarding the head office lease contract.
  • Over 5,000 student appeals remain unresolved by the NSFAS, with the scheme aiming to resolve these in 45 days.
  • The accommodation crisis has been a major issue, with landlords demanding the NSFAS pay outstanding fees from 2024 and 2025.
  • The NSFAS has reviewed student accommodation management and third-party partnerships, including procurement processes and contracting arrangements.

Statistics:

  • R39 billion: The NSFAS allocation for the university sector in 2025.
  • R10.6 billion: The NSFAS budget shortfall for the 2025 academic year.
  • 73%: The percentage of allocated funding disbursed by the NSFAS.
  • R1.6 billion: The NSFAS funding shortfall in the TVET sector.
  • 5,000: The number of unresolved student appeals.
  • R45 billion: The amount owed to students who took loans before 2018.
  • 329,038: The number of beds covered by the NSFAS at 23 TVET colleges and 17 universities in 2025.
  • R2.5 million: The amount paid by the NSFAS per month on rent for five floors in The Halyard building.

Sources:

  • Waseem Carrim, NSFAS CEO
  • Karen Stander, Chairperson of the NSFAS board
  • Keamogetswe Masike, National Convenor of Mayibuye iAfrika Youth League
  • The Special Investigating Unit (SIU)
  • The Auditor-General
  • Public Protector

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