The Department of Higher Education announced that the University shortfall is projected to be R1.1 billion in the current financial period. This will result in a shortfall of a projected R5.5 billion shortfall in the 2024/25 period, and increasing further to R8.2 billion in 2025/26.
They then said:
The potential changes in the projections could result in material shortfalls in supporting TVET students, possibly resulting in an increase in student protests due to a decrease in headcount funded.
These budget cuts and shortfalls could result in the National Student Financial Aid Scheme (NSFAS) being unable to pay NSFAS allowances on time for the beginning of the year. The beginning of the academic year is when students need these allowances most which could further fuel the possibility of student protests.
Department estimates that the 10% reduction in university funding will result in 87 712 students not receiving NSFAS funding for 2024 which will further increase to 120 976 students.
The South African Union of Students (SAUS) has spoken out about the challenges which face NSFAS and negatively impact students as a result:
The Department of Higher education and training needs to pay attention into the sector challenges and most importantly the instability of NSFAS. Success of the funded students directly depends on the stable and efficient funding scheme.
They have said that the 10% budget cuts will "plague the sector into a serious instability". One recommendation the union has is for stakeholders and representatives from the department to visit institutions during the registration period.
"It is very important to strengthen communication between NSFAS and students to ensure that matters are resolved expeditiously," said the union.
Universities South Africa (USAf) has also expressed concern about NSFAS challenges resulting in protests at campuses around the country.
The closure of NSFAS applications on 31 Jan 2024 creates difficulty for applicants registering on time. There is no assurance that applicants will receive outcomes before campus begins and before registration deadlines close. This will have a major impact on enrolment tracking and may result in significant over or under-registration with the possibility of applicants being disadvantaged.
USAf has reiterated that work needs to be done to avoid protests which occur annually at universities saying that student debt is a "source of student anguish and upheaval at the beginning of each year".
