Minister of Higher Education and Training Buti Manamela has placed the National Student Financial Aid Scheme (NSFAS) under administration, citing poor governance and maladministration.
Minister of Higher Education and Training Buti Manamela has placed the National Student Financial Aid Scheme (NSFAS) under administration. The decision was announced on Monday, citing serious concerns over poor governance and maladministration at the entity responsible for funding millions of students.
NSFAS provides financial aid to eligible students from poor and working-class families. It has faced growing criticism in recent years over payment delays, ghost students, corruption allegations and weak financial controls.
Reasons for the Intervention
According to the Minister, the decision follows a detailed assessment that revealed significant governance failures. These include irregular expenditure, inadequate oversight, and repeated failures to meet basic operational standards.
Placing NSFAS under administration means an independent administrator will take over day-to-day management while a turnaround plan is developed. This is a temporary measure aimed at stabilising the scheme and restoring public confidence.
Impact on Students
NSFAS funds accommodation, tuition, books and living allowances for hundreds of thousands of students. The intervention is expected to bring greater stability to payments and reduce the risk of disruptions during the 2026 academic year.
However, students and universities will be watching closely to ensure the administration process does not cause further delays in funding.
What Happens Next
The appointed administrator will conduct a full diagnostic review and implement corrective measures. The Minister has indicated that the goal is to return NSFAS to full functionality as soon as possible while strengthening governance structures to prevent future failures.
This is not the first time NSFAS has been placed under administration. Similar interventions have occurred in the past, highlighting ongoing systemic challenges within the scheme.
