More than R5bn of NSFAS aid flagged as wrongly awarded to well-off families, probe finds

Preliminary investigations by the Special Investigating Unit (SIU) indicate more than R5 billion of National Student Financial Aid Scheme (NSFAS) funds may have been assigned to students who did not qualify for funding,

Who was affected and how

The SIU’s early work identified more than 40,000 applications that were improperly granted where household income exceeded the R350,000 eligibility threshold. Authorities and advocates say the consequence has been reduced access to funding for genuinely needy students, with ongoing implications for higher-education access and the integrity of NSFAS.

Arrests and institutional response

Recent enforcement action in Limpopo resulted in the arrest of eleven suspects and four companies linked to alleged NSFAS fraud. The SIU and other agencies continue investigations into the matter.

NSFAS has acknowledged losses and is working with the SIU. The Minister has directed NSFAS to deploy its forensic unit to support investigations and pursue legal action where appropriate.

Voices from campuses and experts

University and student voices in reporting have framed the issue as a direct harm to poor students.

“Some people are corrupt to the core, leading to stealing from the poor. We are under siege as a country; the poor remain poor, and the elite and middle-class individuals continue stealing from them. This should be immediately stopped. It is a shame,”

said Witness Maluleka, head of department for criminology and criminal justice at the University of Limpopo, characterising the takeovers of funds as criminality among South Africans.

Political lecturer Benjamin Rapanyane described the problem as a serious obstacle to NSFAS’s mandate and warned of the potential for wider unrest if funding shortfalls persist.

“If left unattended, it might give rise to student protests nationwide in cases where students are told that there is no funding available,”

he said.

Students report disrupted studies and urgent needs

Reporting from affected students details how rejected or delayed funding is affecting study and daily survival. One final-year public management student said her application was rejected within hours and that she has struggled to get help from NSFAS despite registering for the semester. She described relying on a single mother for rent and groceries and taking part-time work to survive.

Another student described being unable to write exams without settling a college balance, and others reported late accommodation payments that have increased the threat of eviction while they await NSFAS funding.

Investigation and next steps

The SIU-led preliminary findings, recent arrests and NSFAS’s internal forensic deployment mark the start of a larger investigation and legal process. Authorities have said investigations continue, and NSFAS has been instructed to pursue legal remedies where appropriate.

Stakeholders in higher education warn that resolving fraud and payment delays will be necessary to restore confidence in student funding and to ensure that limited resources reach the poorest applicants.