Higher Education Minister Nobuhle Nkabane confirmed that plans are underway to move the National Student Financial Aid Scheme (NSFAS) out of its current headquarters in Cape Town and establish regional offices across provinces instead.
NSFAS is currently paying R2.5 million per month for its Cape Town lease, and a legal review is assessing whether to reduce or terminate this lease.
The NSFAS legal services unit is finalising a thorough review of the current lease agreement for the Cape Town offices.
Minister Nkabane revealed that new offices are planned for KwaZulu-Natal, Eastern Cape, and Gauteng, with a target launch at the beginning of the 2025 academic year.
They explained that the decentralisation of NSFAS operations aims to reduce travel costs and enhance access to its services. This will enable NSFAS to offer faster and more localised support for students.
Additionally, the move is expected to improve NSFAS’s operational efficiency by reducing delays and enhancing responsiveness to student needs.
Building On Earlier Plans
The update provided by the Minister supports the goals of the acting NSFAS chairperson.
Earlier this year, NSFAS Acting Chairperson Prof. Lourens Van Staden confirmed that the plans to establish regional offices were aimed at ensuring the government bursary scheme's presence in all provinces around the country.
Our aim is to alleviate tensions and foster a harmonious academic environment across all institutions.
NSFAS Cape Town Office Controversy
NSFAS has faced backlash over the R2.5 million monthly rental cost.
The scheme said the decision to move to Cape Town was initially based on space constraints at its previous office in Wynberg; however, the current office has been criticised for being costly and inaccessible for most students who are based outside the city.
In early 2023, UDM leader Bantu Holomisa raised concerns over NSFAS’ rent payments and called for an investigation into the R20 million allegedly paid for months before the scheme moved in.
The Organisation Undoing Tax Abuse (OUTA) also pointed out the disparity between the office costs per employee and the annual student accommodation allowance.
