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Impact of NSFAS mismanagement on South African universities
Weekend Argus on Saturday
|July 12, 2025
THE dysfunction at the heart of the National Student Financial Aid Scheme (NSFAS) and various Sector Education and Training Authorities (SETAS) has been the topic of many recent media articles. This focus is needed, as it directly affects the academic journey and future of South Africa's most vulnerable students.
However, the burden these failures place on the institutions tasked with delivering quality higher education namely, the public universities - continues to receive little or no acknowledgment.
For years, universities have had to carry the brunt of NSFAS mismanagement, often without any meaningful prior consultation or support. While Minister Nkabane and her department continue to promise reforms, universities remain on the receiving end of a crumbling system that is fast becoming unsustainable not just for students, but for the institutions themselves.
The NSFAS was designed to ensure that no student is denied access to higher education due to financial barriers. Yet, despite meticulous planning from universities, every academic year begins with chaos: delayed funding, defunding of students midyear, and tens of thousands of students left in accommodation limbo. These issues do not affect only the students - they cripple university operations.
Universities are not profit-driven institutions but operate as financially accountable public entities. The payment of municipal bills, maintenance of infrastructure, licences for an IT infrastructure to enable digital innovation, and the payment of salaries are but a few of the basic things that are expected of any well-managed institution.
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