Rethinking NSFAS: minister sparks debate

RECENT remarks by Finance Minister Enoch Godongwana have triggered renewed debate about the state of the National Student Financial Aid Scheme (NSFAS).

- HLAMULO KHOROMMBI

In a pointed statement, the minister suggested that, given NSFAS’s persistent failures, one might be tempted to shut it down entirely. His frustration reflects a sentiment widely felt across higher education institutions: NSFAS, in its current form, is struggling to fulfil its mandate.

But while the minister's criticism is understandable, the question we must ask is deeper and more structural. South Africa must interrogate not only the performance of NSFAS but the role that public agencies play in delivering essential social programmes.

NSFAS was formally established in 1999 as a statutory body to widen access to higher education for poor and working-class students.

It replaced the Tertiary Education Fund of South Africa (TEFSA) and was tasked with administering statefunded financial aid directly to qualifying students.

Its founding goals were clear:

« to redress historical inequalities in higher education,

* to remove financial barriers to study,

+ to manage and disburse student funding transparently,

« and to support national development through increased graduate production.

For years, NSFAS handled these functions internally, providing a direct link between government funding and student support.

The outsourcing crisis

Over the past few years, NSFAS gradually outsourced core functions such as allowance disbursement, verification systems, and digital infrastructure. These contracts were meant to modernise the scheme, but instead:

« administrative costs increased,

+ system failures escalated,

+ allowances were delayed,

* communication broke down,

+ and accountability became fragmented.