The National Student Financial Aid Scheme (NSFAS) has long been one of the most volatile elements in South Africa’s higher education system, plagued by governance failures, delayed payments, accommodation disputes, and a funding model that leaves both universities and the “missing middle” in limbo. For years, the scheme has been described as a ticking time bomb.
This week, newly appointed Higher Education Minister Buti Manamela made swift moves to stabilise the situation, announcing sweeping reforms aimed at turning around the Department of Higher Education and Training (DHET), NSFAS, and the SETAs.
Dr Linda Meyer, MD at The IIE’s Rosebank College and President at Rosebank International University College Ghana, welcomed the Minister’s decisive start:
“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 said.
But Meyer stressed that urgency must translate into concrete, timely outcomes.
“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.”
Although the finer details of Manamela’s plan are still to be revealed, Meyer highlighted four critical priorities:
Reforming the funding model: A balanced system that supports poor students, the missing middle, and institutional sustainability is essential. Tiered grants and loans linked to post-graduation employment could provide long-term stability while broadening access.
Upgrading ICT systems: A modern, integrated platform linking NSFAS, universities, TVET colleges, and SARS would cut errors, speed up disbursements, and curb fraud.
Strengthening governance: A credible NSFAS CEO, direct DHET oversight or decentralised disbursements, and a skilled independent board are needed to restore trust and accountability.
Addressing the missing middle: Expanding eligibility through tailored loan schemes would ease the burden on middle-income families while promoting equity.
Dr Meyer reaffirmed her backing for the Minister’s approach:
“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.”
She added that while reform will not be easy, the early signs are encouraging.
“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.
