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NSFAS budget cuts could prompt student protests



NSFAS budget cuts could prompt student protests

NSFAS budget cuts could prompt student protests .The National Student Financial Aid Scheme (NSFAS) faces a looming crisis as budget cuts threaten to reduce funding for the 2024 academic year. The Department of Higher Education has disclosed a projected shortfall, raising alarms within unions, organizations, and student communities about the potential for widespread protests.

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Budget Cuts Impacting University Funding

The Department of Higher Education recently announced a projected University shortfall of R1.1 billion in the current financial period, anticipating a further shortfall of R5.5 billion in 2024/25 and an alarming increase to R8.2 billion in 2025/26.

Concerns Over TVET Student Support

The department warns of potential material shortfalls affecting Technical and Vocational Education and Training (TVET) students, potentially triggering an increase in student protests due to a decline in headcount funded.

NSFAS Allowances at Risk

Budget cuts and shortfalls pose a significant risk to the timely disbursement of NSFAS allowances. This becomes a critical issue at the beginning of the academic year when students rely on these allowances the most, further intensifying the possibility of student protests.

Impact on Student Enrollment

The Department estimates that a 10% reduction in university funding will result in 87,712 students not receiving NSFAS funding for 2024, escalating to 120,976 students in subsequent years.

SAUS Call for Attention

The South African Union of Students (SAUS) highlights the challenges facing NSFAS and emphasizes the direct impact on student success. The union urges the Department of Higher Education and Training to address sector challenges and ensure the stability and efficiency of the funding scheme.

Stabilizing Communication Between NSFAS and Students

In response to the crisis, SAUS recommends strengthening communication between NSFAS and students to expedite issue resolution. The union proposes that stakeholders and department representatives visit institutions during the registration period to address concerns promptly.

Universities South Africa’s Concerns

Universities South Africa (USAf) echoes concerns about NSFAS challenges potentially leading to protests across campuses nationwide. The closure of NSFAS applications on January 31, 2024, poses challenges for applicants trying to register on time, raising concerns about enrollment tracking and the possibility of applicants being disadvantaged.

Preventing Annual Protests

USAf emphasizes the need for proactive measures to prevent annual protests, citing student debt as a recurring source of anguish and upheaval at the beginning of each academic year.


As NSFAS faces a funding crisis and the specter of student protests looms large, stakeholders, unions, and educational institutions must collaborate to find immediate solutions to ensure the stability and effectiveness of student financial aid.

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How NSFAS Allowances Paid To Students



How NSFAS Allowances Paid To Students

How NSFAS Allowances Paid To Students. More than one million students in South Africa benefit from comprehensive bursaries provided by the National Student Financial Aid Scheme (NSFAS). Despite this support, student unions, particularly the South African Students Congress (SASCO), have expressed concerns about the effectiveness of the current funding system and have called for improvements.

Check Also: ZA Student Portal

Challenges Faced by Students

In 2023, NSFAS funded over a million students enrolled in approved courses at universities and Technical and Vocational Education and Training (TVET) colleges. However, the scheme faced challenges in effectively assisting the poor and working-class students due to several issues. These challenges were partly attributed to the implementation of a direct allowance payment system, which led to irregularities and necessitated “consequence management.”

Controversy Over Allowance Distribution

The direct payment system, introduced in 2022, involved four companies handling student allowance payments. However, an investigation revealed potential conflicts of interest, leading to the dismissal of NSFAS CEO Andile Nongogo and termination of contracts with the service providers. Despite this, in 2024, NSFAS required students to register with these same companies for allowance distribution, drawing criticism from SASCO.

SASCO Criticisms and Demands

SASCO has accused the NSFAS Board of hypocrisy for reinstating allegedly irregular service providers. They argue that the current system exploits students, leading to delays, inefficiency, and unnecessary charges. SASCO calls for the implementation of recommendations from the Werksmans report, including terminating contracts with the companies.

Accommodation Crisis

SASCO also criticizes NSFAS for its indecisiveness in addressing the student accommodation crisis. While NSFAS launched an accommodation portal in 2022, SASCO argues that NSFAS has not taken practical steps to increase bed spaces in higher learning institutions and TVET Colleges. They demand immediate action to improve student living conditions.


The current NSFAS funding system faces criticism from student unions like SASCO, who call for more transparency, efficiency, and student-centered approaches. The ongoing controversies highlight the need for NSFAS to address these concerns promptly to ensure that students receive the support they need to succeed in their studies.

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