The National Student Financial Aid Scheme (NSFAS) had a budget shortfall of R10.6bn in the 2025 academic year.
NSFAS chairperson Dr Karen Stander said this was due to three key factors: the increasing number of students qualifying for higher education; the ongoing cost of living crisis, which has expanded household eligibility for NSFAS support; and declining state resources affecting funding availability.
Stander says because of the deficit, some students have been unable to register, including university students who applied during the Technical and Vocational Education and Training (TVET) cycle; students whose registration data was received after the March 21 cut-off; approved appeals which cannot be funded; second-semester registrations; and second-semester first-time entrants.
“NSFAS has already submitted the request for the use of other funds to supplement the shortfall. It's important to stress that this is a shortfall and not a bailout, and that the new board and acting CEO are committed to correcting this course. We must face the truth. The root cause lies in a funding model that promised more than is available without adjusting eligibility criteria accordingly,” she said.
Stander said they would revise the eligibility criteria and conditions for financial aid soon to ensure that, from the next academic year, NSFAS remains within budget while still serving those most in need.
“Our board has approved the development of institutional policies and strategies governing the eligibility criteria and conditions for financial aid. This initiative is not for the distant future but will take effect from the next academic year, as directed by DHET. We must ensure that NSFAS remains within budget, as per the NSFAS Act and the PFMA, while fulfilling our duty to widen access to higher education.
“The board commits to applying this policy fairly and equitably, ensuring that both financial and academic eligibility are evaluated with transparency and consistency for new applicants and continuing students,” she said.
NSFAS acting CEO Waseem Carrim said they have a R39bn allocation for the university sector and have dispersed about 73% of that already, about R29bn.
“But we do face a budget shortfall of about R10.6bn. We are working with the department of higher education and training and the National Treasury to obtain the requisite concurrence and approval to plug the shortfall and enable students who are facing blocked registrations to be able to register for the 2025 academic year.”
On TVET student funding, Carrim said the scheme had allocated a budget of about R9bn, of which R6.4bn has already been disbursed, about 70% of the total TVET budget.
He said that within the current funding system, NSFAS supports about 783,000 students — 576,000 in the university sector and 206,000 in the TVET sector.
On appeals, Carrim said they have rejected 14,700 appeals, and have close to 6,000 that are unresolved, mainly relating to the second semester, which are now being processed by the team.
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