The National Student Financial Aid Scheme (NSFAS) has long been a flashpoint in South Africa’s higher education landscape, teetering on the brink of collapse amid systemic inefficiencies, governance failures, and student unrest. With delayed disbursements, accommodation crises, and a funding model that leaves universities and the “missing middle” stranded, NSFAS has been aptly described as a powder keg.
However, Minister Buti Manamela this week, shortly after his appointment, moved swiftly to defuse what had become an increasingly explosive status quo, by announcing dramatic reforms and a turnaround in the DHET, NSFAS, and SETAs.
Dr Linda Meyer, MD at The IIE’s Rosebank College, and a prominent thought leader in higher education policy, praised the Minister’s early actions: “Minister Manamela has hit the ground running, bringing a sense of urgency and clarity to a system in dire need of reform. His commitment to stabilising NSFAS and addressing its governance and operational failures is a vital and extremely welcome first step towards steadying the volatile higher education and NSFAS landscape,” she says.
“However, we urge the minister to maintain this urgency and drive momentum to ensure that the implementation of his new strategy focuses strongly on ensuring that students starting the 2026 academic year are not subjected to the same challenges faced by students in years past.
“We have a great understanding of the Herculean task that lies ahead, and the difficulties the Minister and his team will encounter on the way. But we hope that the issue of NSFAS disbursements can be addressed in months, not years, to ensure that each qualifying individual will be able to benefit as we enter the new academic year.”
Dr Meyer said that while the details of the Minister’s plans are not yet known, the following must be addressed:
Reforming the funding model
NSFAS must adopt a balanced funding model that supports poor students, the missing middle, and university sustainability. Introducing tiered loan and grant options, with repayment structures tied to post-graduation employment, would ensure long-term viability while expanding access to a broader range of students.
Upgrading ICT infrastructure
A modern, integrated ICT system that connects NSFAS, universities, TVET Colleges and SARS is critical to streamlining eligibility verification and disbursements. Such a system would reduce errors, expedite payments, and prevent fraud, ensuring students receive timely support for their academic and living expenses.
Streamlining governance
Appointing a competent and credible NSFAS CEO, relocating NSFAS to Pretoria under the DHET’s direct oversight, or decentralising disbursements to universities, would reduce administrative costs and enhance accountability. Establishing a robust, independent, board with extensive higher education administration management experience (that is not currently the case) to oversee operations is essential to addressing past governance failures and rebuilding public confidence.
Addressing the missing middle
Expanding eligibility criteria to include tailored loan schemes for the missing middle would promote equity and ensure that taxpayers and middle-income families also benefit from the system they fund. This would align NSFAS with South Africa’s goal of inclusive education access.
“We are in full support of the Minister’s vision and strategic plan as outlined this week. It is our sincere hope that this vision can be translated into reality fast, and not, as in the past, run into impenetrable bureaucracy and eventually run out of steam,” Dr Meyer says.
“The path to reform is not without challenges, but the Minister’s early leadership, backed by a clear vision and stakeholder support, sets the stage for progress. South Africa deserves an NSFAS that is transparent, accountable, and built for the future. With sustained momentum, Minister Manamela can turn this vision into reality, ensuring that higher education remains a pathway to empowerment for all South Africans.”
