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NSFAS blames R10.6bn oversubscription for crisis
The Star
|August 28, 2025
NATIONAL Student Financial Aid Scheme (NSFAS) board chairperson Karen Stander has blamed an R10.6 billion oversubscription in university funding for widespread student registration issues during the 2025 academic year.
Speaking at a media briefing in Pretoria yesterday afternoon, Stander provided updates on the 2025 application cycle, student allowance disbursements, ICT system upgrades, and the appeals process.
She said payments to universities were processed promptly, ensuring the timely disbursement of allowances and supporting academic continuity.
However, she confirmed that in March, NSFAS disclosed to Parliament that its university funding for the year had been oversubscribed by R10.6bn.
Stander attributed the shortfall to several key factors, including a growing number of qualifying students, the ongoing cost-of-living crisis, expanding household eligibility, and a decline in state resources in real terms.
“Section 14(3) of the NSFAS Act explicitly prohibits overspending beyond the allocated budget; Stander noted.
She said as a result of the budget deficit, several categories of students were unable to register.
University students who applied during the TVET application cycle
® Students whose registration data was submitted after the March 31 cutoff
® Approved appeals that cannot be funded
@ Second-semester registrations
Second-semester first-time entries
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