The National Student Financial Aid Scheme (NSFAS), which allocates billions to support deserving students in South Africa, faces a significant challenge: institutions of higher learning are owed over R11.6 billion by the scheme. This debt accumulated between 2017 and 2023.
NSFAS provides comprehensive bursaries and student loans for eligible students enrolled in approved programs at universities and TVET colleges, covering tuition, registration, and allowances for living expenses and learning materials.
Responding to a parliamentary inquiry, NSFAS CEO Wassim Carrim revealed the breakdown of the outstanding amounts: universities are owed R10.232 billion, while TVET colleges are owed just over R1.3 billion.
Carrim clarified that these figures are preliminary and contingent upon ongoing reconciliation processes. These processes require agreements between institutions and NSFAS regarding student-related assets and liabilities and will undergo further scrutiny by the Auditor General of South Africa. The amounts owed for the 2024 academic year are currently being compiled.
Reconciliation and Payments
NSFAS is actively working to finalize reconciliation agreements with various institutions to facilitate the settlement of outstanding payments.
Notably, Boland College has already received nearly R9 million owed by NSFAS for the period spanning 2017 to 2021.
Several institutions, including Nelson Mandela University, Durban University of Technology, Walter Sisulu University, and Thekwini TVET College, are owed sums exceeding millions of rands. NSFAS is collaborating with the Special Investigation Unit for the necessary sign-offs on these amounts, estimated to be over R150 million.
Conversely, the University of Johannesburg, University of Zululand, Tshwane University of Technology, University of the Free State, and Vaal University of Technology collectively owe NSFAS more than R713 million.
