Finance Minister Enoch Godongwana's proposal to abolish the National Student Financial Aid Scheme (NSFAS) and redirect student funding directly to universities and colleges has been hailed.
ActionSA has backed this approach, saying it could finally end the corruption, chaos, and mismanagement that have long plagued the system.
ActionSA’s Head of the Students Chapter, Thabo Malosi, said NSFAS’s failures have caused unnecessary suffering for students across South Africa, from delayed allowances and academic exclusions to hunger and crippling stress.
“For far too long, students have paid the price for NSFAS’ corruption, mismanagement, and constant administrative chaos. The minister’s proposal gives South Africa a real chance to rebuild a funding system that actually supports students instead of failing them.”
Malosi added that sending funds directly to institutions would cut out the middlemen who have repeatedly let students down, speed up the payment of allowances and tuition, improve financial tracking and accountability, and provide greater stability for students affected by constant delays and system breakdowns.
“We cannot allow another generation of young people to be failed by a scheme that has collapsed beyond repair. For years, NSFAS has been a breeding ground for political interference, incompetence, and theft, and students have borne the consequences. This must end,” he added.
The criticism comes amid a string of high-profile NSFAS blunders. In one case, a student at Walter Sisulu University was meant to receive a monthly allowance of R1,400, but the financial scheme mistakenly deposited R14 million into her account.
More recently, NSFAS overpaid students R13,800 in April 2025, including R10,000 intended for landlords. These errors highlight systemic failures and raise serious doubts about the institution’s reliability.
For years, universities and students have struggled with unpaid fees, delayed allowances, and disrupted academic careers, fuelling growing frustration over corruption claims, tender scandals, and persistent mismanagement.
Critics argue that NSFAS has shifted from a vital support system to an inefficient, chaotic institution.
Godongwana has criticised NSFAS as an unnecessary intermediary by stating that if he had an option, he would close it.
“If I had the option to close NSFAS, I would do it with my eyes closed. It would be gone tomorrow,” he said, adding that the CEO reportedly earns R4 million a year while much of NSFAS’s work has been outsourced.
"Because what does NSFAS do? NSFAS is supposed to be taking money from the Department of Higher Education and transferring it to universities. We don't need that kind of thing.
"We just need to transfer money to universities, since the universities do the task. But we created some strange thing called NSFAS, and the CEO, I was telling the president how much this is. He said, 'I can't believe; are they earning more than me?' I said, 'Yes'."
ActionSA stressed that while it supports the minister’s proposal, the government must consult with student bodies, universities, and civil society to ensure any new funding model is fair, functional, and sustainable.
“We are ready to contribute constructively to building a system where every deserving student gets the support they need, free from corruption, delays, and political interference,” Malosi said.
The Star
masabata.mkwananzi@inl.co.za