The student union has raised concerns over growing instability at NSFAS, saying delays in funding, frozen allowances and administrative issues are placing poor and working-class students under severe pressure..
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The South African Union of Students (SAUS) has raised concern over what it describes as instability at the National Student Financial Aid Scheme (NSFAS), saying more than 12 000 students have had their allowances frozen under “gap investigations” despite being eligible for funding, leaving thousands without meal or accommodation support during the examination period.
SAUS said the situation had resulted in students facing hunger, psychological distress, and possible eviction after NSFAS allegedly failed to pay accommodation providers and meal allowances, warning that students were being forced to write exams under “inhumane and unstable conditions”.
The union said it was “completely unacceptable” that students were expected to prepare for examinations without financial certainty, adding that the crisis had emerged amid ongoing administrative uncertainty within NSFAS.
It further warned that placing NSFAS under administration had contributed to instability within the scheme, saying urgent student matters had stalled and accountability structures remained unclear.
This comes after Higher Education and Training Minister Buti Manamela placed NSFAS under administration two weeks ago due to governance instability, audit failures, and operational breakdowns affecting student funding.
At the time, Manamela said the intervention was aimed at stabilising the institution and stressed that student funding would not be disrupted.
He confirmed that allowances, appeals processes, and institutional payments would continue, and appointed former South African Reserve Bank and SARS executive Professor Hlengani Mathebula as administrator to restore governance and operations.
SAUS also raised concern over students being defunded despite successful appeals and provisional funding, saying some students were entering examinations without clarity on whether they remained funded.
The union further flagged short payments of tuition fees to universities, arguing that students were being left with unexpected debt despite having been approved for NSFAS funding, which could affect graduation outcomes.
SAUS said delays in finalising the 2026 NSFAS funding guidelines had worsened the situation, noting that proposed increases in meal and accommodation allowances had still not been approved since January, while the current meal allowance of R1650/R1450 was described as inadequate amid rising living costs.
“The South African Union of Students registers its utmost disappointment and deep concern regarding the beginning of instability at the National Student Financial Aid Scheme for the first time ever since this year began,” SAUS said.
The union added that students had been placed under “Gap Investigation” despite qualifying for funding.
The union called for the immediate release of frozen allowances, urgent payment of outstanding accommodation fees to prevent evictions, clarity on NSFAS governance and leadership, and the reinstatement of defunded students ahead of examinations.
It also demanded finalisation of the 2026 funding guidelines, an increase in student allowances, and settlement of tuition shortfalls owed to institutions, warning that continued instability would have long-term consequences for the higher education sector.
Meanwhile, the Portfolio Committee on Higher Education and Training confirmed that it was due to receive a briefing from Higher Education and Training Minister Buti Manamela on Tuesday regarding the decision to place NSFAS under administration, but the meeting was postponed.
Committee chairperson Tebogo Letsie said the postponement followed the department’s failure to submit its presentation in time.
“We took this decision at 17:00 on Monday. As the day progressed, it was clear that we would not be getting any presentation from the department for our meeting,” Letsie said.
“This is indeed a worrying trend and it’s unacceptable.”
Letsie also said the committee had planned to engage former NSFAS board members over governance concerns, but NSFAS indicated they could only appear in a personal capacity as they were no longer in office, while communication confirming this was only received late on Monday.
He added that the administrator only submitted correspondence at 16:38 on Monday, despite the committee having written requesting their presence on 7 May 2026.
“We felt that this was a direct sabotage of the meeting,” Letsie said.
In response, the Department of Higher Education and Training said Minister Manamela had been ready to appear before the committee and remained committed to parliamentary accountability.
“The Minister had confirmed his availability and readiness to appear before the Committee in fulfilment of his constitutional responsibility,” the department said.
It said the postponement took place in the context of urgent litigation proceedings instituted by former NSFAS board members relating to the decision to place the scheme under administration, as well as ongoing legal and procedural processes.
“The Minister further reiterates that all decisions taken regarding NSFAS have been guided by the need to protect student funding continuity, restore governance stability, strengthen accountability and safeguard the long-term integrity and sustainability of NSFAS,” the department said.
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