The National Student Financial Aid Scheme (NSFAS) is under fire from Parliament’s Portfolio Committee on Higher Education, Science and Innovation following mid-academic term decisions to terminate lease agreements with unaccredited student accommodation providers.
NSFAS says the move aims to ensure students live in learning environments that are conducive to academic success. However, the timing of the cancellations has sparked concern.
Parliament Warns Against Student Impact
During a recent briefing to Parliament, NSFAS provided updates on 2025 funding decisions, the disbursement of allowances, student accommodation, and other operational matters.
Committee Chairperson Tebogo Letsie acknowledged the importance of ensuring accredited housing but criticised the execution.
When cancellations happen during the academic term or trimester, it creates serious challenges. Students are left stranded, unable to graduate, and burdened with debt for decisions they had no control over,
He urged NSFAS to expedite the process of accrediting all student accommodation facilities.
Student Defunding Draws Heavy Criticism
Lawmakers also raised concerns about the mid-year defunding of students during the 2024 academic cycle. The decision affected not only students but also the institutions they attend.
Institutions that had already budgeted for registered students were left financially exposed,
NSFAS provides bursaries and student loans to eligible students enrolled in approved programmes at public universities and TVET colleges. Funding covers tuition, registration, and allowances for accommodation, meals, and learning materials.
Operational Delays Fuel Student Debt
The committee also pointed to ongoing operational issues at NSFAS, which they say are contributing to rising student debt and placing students' academic progress at risk.
NSFAS’s operational shortcomings are exacerbating student debt levels and jeopardising students' academic success,
A key concern is the delay in communicating funding outcomes. Students often wait months before learning whether their applications have been approved or not.
Committee Calls for Better Communication
The committee urged NSFAS to improve coordination and communication with universities, TVET colleges, and students.
They warned that continued delays and lack of clarity in funding decisions leave students vulnerable and risk further damage to the credibility of the funding scheme.
