Johannesburg, South Africa — The National Student Financial Aid Scheme (NSFAS) is addressing a severe financial crisis, with an estimated R15 billion shortfall threatening the sustainability of South Africa’s fee-free higher education policy. Higher Education Minister Buti Manamela revealed this alarming situation during a briefing to Parliament’s Portfolio Committee on Higher Education.
The shortfall, which has expanded from R2. 5 billion in 2018 to R13. 5 billion last year, is a significant challenge for NSFAS, which was established to provide financial aid to students from poor and working-class backgrounds.
The growing financial gap has led to the freezing of allowances for thousands of students who qualify for funding but are unable to continue their studies without financial support.
As of May 2026, over 12,000 students had their allowances frozen, according to the South African Union of Students (SAUS), which has called for the immediate release of these funds and the urgent settlement of outstanding landlord payments, highlighting the impact on students’lives.
In response to the crisis, NSFAS leadership, including Acting CEO Waseem Carrim, has presented strategies to secure funding and stabilize the 2025 academic year.
However, the details of these strategies remain undisclosed, and the future of fee — free education in South Africa hangs in the balance.
The funding shortfall has wide — ranging implications for students, many of whom are unable to continue their studies without financial support, leading to a loss of educational opportunities and potential for economic growth in South Africa.
The urgency of the situation requires immediate attention from the government and NSFAS.
As the academic year approaches, thousands of students await word on the status of their funding, and the resolution of the R15 billion shortfall is crucial to ensure that no student is left behind in South Africa’s pursuit of higher education.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: enca
Source: Zandile.Khumalo
