In a public update on the status of NSFAS Acting CEO Waseem Carrim explained that the fund is out of money, but they "hope to stabilise the 2025 academic year". Students were left asking about next year!
The heads of the National Student Finanical Aid Scheme (NSFAS) addressed a public media briefing to update the country on the status of the fund.
The update comes 6 months after a new Board and Acting CEO took over the running of the organisation from the Administrator who was previously in charge.
Dr Karen Stander, the Chairwoman of NSFAS, explained that the Board is now made up of professionals with at least a Masters degree. She outlined the significant challenges they are facing, including problems with supply chain governance and an unstainable funding model.
Stander announced that the organisation will be moving their head office to Tshwane. She explained that with 400,000 students the city has the most students of all local cities.
Stander explained that the fund had used all of the funds allocated to them for the current academic year. The organisation has a R10.6 billion shortfall for the current academic year. This had led to some students who had raised successful appeals still not being funded, and therefore not able to register this year.
"NSFAS has already submitted the request for the use of other funds to supplement the shortfall. It's important to stress that this is a shortfall and not a bailout, and that the new board and acting-CEO are committed to correcting this course. We must face the truth. The root cause lies in a funding model that promised more than is available without adjusting eligibility criteria accordingly," said Stander.
The NSFAS leaders explained that they were having discussions with the Department of Higher Education and Training, and also the National Treasury about ways that they can improve their funding.
Acting-CEO Carrim explained that they believe they can, "probably stabilise the 2025 academic year" but a sustainable solution is needed.
Funding for the next academic year has already been allocated by the national government so students can expect applications for 2026 funding to be available later this year. However there was no confirmation of the opening date for 2026 applications from the NSFAS leadership.
One of the areas that NSFAS will be focusing on is securing repayments from those beneficiaries who received loan funding prior to 2017. Carrim explained that the organisation is owed approximately R45 billion from students who received funding for their degrees and are now working.
Students and young people commenting on the Youtube live stream of the event seemed unimpressed by the information they heard from the event. "Open Registration Portals" was a common refrain in the comments section of the live stream.
