Government Advances R4 Billion To NSFAS Amid Funding Crisis

Government Advances R4 Billion To NSFAS Amid Funding Crisis

Higher Education Minister Buti Manamela has revealed that the government has advanced R4 billion to the National Student Financial Aid Scheme (NSFAS) to ease financial pressure on universities.

In a written parliamentary reply to Inkatha Freedom Party (IFP) MP Sanele Zondo, Manamela said the Department of Higher Education and Training provided R2 billion in September and another R2 billion in October to help universities manage cash-flow challenges.

The emergency funding comes as NSFAS faces an estimated R15 billion shortfall for 2026, driven by the growing number of students qualifying for financial assistance.

Manamela said the department is engaging National Treasury to address the funding gap and has submitted financial models to support increased NSFAS allocations.

The government is also considering longer-term solutions, including expanding student loan programmes for missing-middle students, reviewing funding eligibility requirements and introducing public-private partnerships to reduce accommodation and infrastructure costs.

Despite the financial challenges, Manamela reaffirmed the government’s commitment to providing fee-free higher education to students from poor and working-class households.

However, he acknowledged that limited funding would require the government to prioritise vulnerable students while exploring alternative financial assistance options for middle-income households.

NSFAS has faced ongoing criticism over governance failures, delayed payments and mounting financial obligations to universities.

The R4 billion advance is expected to provide temporary relief while the government works towards a sustainable funding solution.

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