The National Student Financial Aid Scheme (NSFAS) is facing renewed scrutiny after an investigation found that more than 40,000 students were allegedly funded improperly, costing the scheme approximately R5.1 billion.
The findings are contained in an investigation by Public Protector Kholeka Gcaleka into the administration of NSFAS and its student funding processes.
According to the investigation, the affected students were enrolled at 76 higher education institutions. More than R2 billion of the money has since been recovered.
Gcaleka said information presented by the Special Investigating Unit (SIU) to Parliament’s Standing Committee on Public Accounts (Scopa) was among the developments that raised concerns about NSFAS.
Investigations conducted under Proclamation R88 of 2022 identified more than 40,000 students who had allegedly received funding improperly.
Gcaleka said these findings, together with complaints lodged with the Public Protector, engagements with stakeholders and other oversight reports, pointed to possible systemic maladministration within the funding scheme.
However, the investigation also highlighted broader administrative problems affecting students who rely on NSFAS.
Students have reportedly faced delays in receiving confirmation of their funding, monthly allowances and the processing of appeals. There have also been delays in NSFAS settling tuition fees with higher education institutions.
In some cases, the delays have had serious consequences, with institutions allegedly withholding students’ qualifications because their accounts had not been settled.
Gcaleka noted that concerns over NSFAS administration are not new. Independent reviews, including the 2021 Ministerial Committee of Enquiry, had previously found that the scheme had been operating in what was described as a near-permanent state of crisis.
The Public Protector’s findings have raised questions about NSFAS’s ability to administer billions of rands in student funding effectively and ensure that eligible students receive financial support on time.
The investigation is likely to add to calls for stronger oversight and improved administration of the scheme, particularly as thousands of students continue to depend on NSFAS to access and complete their higher education.