Nsfas receives over 936 000 applications amid funding challenges and governance concerns

The National Student Financial Aid Scheme (Nsfas) has received more than 936 000 applications for the 2025 academic year, with approximately 668 000 receiving provisional funding pending placement at institutions.

Portfolio Committee on Higher Education and Training Chairperson Tebogo Letsie confirmed the figures in a briefing on Thursday.

Letsie revealed that of the provisionally funded applications submitted between 15 September and 15 December 2024, 659 000 were Sassa beneficiaries.

Nsfas funding and missing middle support

Letsie emphasised the need for Nsfas to “do its due diligence” in processing applications to prevent a repeat of last year’s issues where some students (mostly missing middle) were defunded mid-year.

While Nsfas’s comprehensive student fund model is not yet fully implemented, loan and bursary schemes are in place for the upcoming academic year.

“A loan scheme is meant for the missing middle students and Nsfas is informing us that in the 2025 academic year, they are ready to assist those students,” Letsie explained.

A significant development for the missing middle includes approximately R3.8 billion taken from the National Skills Fund (NSF) and the SETAs to serve as loans, with around 17 000 people having applied for the Nsfas missing middle loan scheme.

ALSO READ: Nsfas chaos: R1.7 billion unallocated to desperate students

Nsfas governance and communication challenges

Letsie revealed that the appointment of a new Nsfas board was internally completed following former Minister of Higher Education Blade Nzimande’s dismissal of the entire board last year due to governance and corruption issues.

The finalisation awaits Cabinet approval.

“I am confident that the board that we’ll get at Nsfas is of good quality,” said Letsie, noting that he asked the minister to amend the position advertisement to include mandatory lifestyle audits for board members.

ALSO READ: ‘Detractors are celebrating’ – Nzimande says Nsfas troubles tarnish government’s reputation

Communication between Nsfas and universities has proved challenging, with some institutions refusing to register students.

Letsie suggested that Nsfas and universities should have a memorandum of understanding and “stop making excuses like ‘we are waiting for this funded list’ or ‘we are waiting for the results'”.

He emphasised that universities should exercise the N+1 rule for returning students, while acknowledging communication challenges with first-years were understandable.

ALSO READ: Nsfas financial chaos drives students to sugar daddies and crime – MP

Nsfas accommodation concerns and corruption

Nsfas spent approximately R17 billion on accommodation in the 2022/23 financial year, prompting the Higher Education Portfolio Committee to investigate.

Letsie cited concerning examples, including students living in shacks in Tzaneen, Limpopo, being charged R4 000, and a syndicate in Vanderbijlpark where residences were fraudulently billing Nsfas.

The committee appointed Nsfas to handle accreditations directly, but a pilot system revealed potential corruption involving both Nsfas and university staff in overcharging schemes.

While the scheme continues using the pilot system, universities maintain control over non-pilot accommodation. Letsie expressed concern about corruption within the two separate systems.

ALSO READ: SIU recovers almost R1bn in Nsfas funds from higher learning institutions

Academic calendar and STEM challenges

The delayed release of the 2024 matric results has significantly impacted the start of the 2025 academic year, particularly affecting TVET and health colleges that typically begin as early as 2 January.

The late release has also affected Nsfas and institutional preparedness, especially impacting students who wanted to submit late applications after receiving unexpected results.

“Those students who have done well and want to study medicine and all of that would then have to do a catchup programme,” Letsie noted.

The portfolio committee plans to meet with the basic education committee and both education ministries to find a consensus on this issue.

Also, the higher education sector continues to face challenges in producing STEM graduates, with Letsie citing insufficient numbers of matriculants achieving the required minimum of 60% in mathematics and science subjects from the basic education sector.

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