Funding Crisis Threatens NSFAS Aid For 2026 Intake

The National Student Financial Aid Scheme (NSFAS) in South Africa has issued a warning that it may exclude thousands of eligible students due to a massive funding shortfall currently estimated at R14 billion. This financial crisis threatens to impact over 100,000 poor and working-class students who rely on NSFAS for essential funding to cover university and college tuition, accommodation, and living costs for the 2026 academic year.

During a recent parliamentary briefing, NSFAS leadership revealed that while approximately 520,000 students can be funded next year, a significant gap remains for more than 100,000 qualifying applicants who may be left without support. The shortfall ballooned from an earlier estimate of R11.6 billion to nearly R14 billion after the surge in second-semester registrations, alarming both the fund and government officials.

In response to this crisis, a technical task team comprising the Department of Higher Education and Training, National Treasury, NSFAS, and the Presidency has been formed. They are tasked with devising a sustainable funding framework and enrollment planning reforms to present to Cabinet by the end of the year. However, this solution comes with uncertainty for many students whose access to education depends on NSFAS support.

Student unions and education advocates have expressed deep concern, highlighting that the funding shortfall is not only a budgetary issue but also a moral and political failure. They stress that education is a constitutional right in South Africa and argue for urgent Treasury intervention, emphasizing that poor and working-class students should not bear the burden of government inefficiencies or insufficient budget allocation.

The funding crisis has roots in the 2017 policy shift from loans to bursaries, which led to the collapse of NSFAS’s loan recovery system. Currently, NSFAS is attempting to recover around R45 billion in outstanding debt to help stabilize its finances.

This funding shortfall poses a direct threat to South Africa’s commitment to accessible higher education, potentially deepening inequalities and limiting future opportunities for vulnerable student populations. The coming weeks will be critical as policymakers seek to resolve the crisis and ensure that no deserving student is left behind due to financial constraints.