NSFAS under fire as 32,000 students miss meal allowances

The National Student Financial Aid Scheme (NSFAS) is facing renewed criticism after student leaders said over 32,000 students have not received their meal allowances, and many students continue to report unpaid accommodation and other funding problems.

Leaders call NSFAS “a complete mess”

Economist Dawie Roodt described NSFAS as “a complete mess” from its inception and said South Africa should send fewer students to university while improving primary education. He questioned the value of funding large numbers of students he said do not belong at university and highlighted concerns about low pass rates and course suitability.

“For starters, South Africa sends far too many students to university,”

Student leaders allege corruption and cartels

Mayibuye Youth Movement national president Keamogetswe Masike said cartels have “hijacked” the scheme and that funds intended for students are being redirected. Masike said over 32,000 students have not received meal allowances, and that between 10,000 and 15,000 of those students were defunded; he added that about 90% of them were first-year students.

“Cartels have hijacked the national financial aid scheme, which has institutionalised what we have called corruption,”

Masike said service providers are evicting students in private accommodation because students cannot pay for beds, and urged NSFAS to decentralise offices to campuses so students can access officials directly. He also called for a commission of inquiry into NSFAS and said students are “hungry, students are angry and some have dropped out or deregistered.”

Officials say some payments and interventions are underway

Higher Education Deputy Minister Yusuf Cassim outlined specific actions and commitments by NSFAS to address a number of problems. He said the scheme responded after being alerted about unpaid accommodation at the Central University of Technology (CUT), where 1,149 students in unaccredited residences had not been paid accommodation allowances.

Cassim said NSFAS was notified on 14 July and that officials assessed affected accommodation sites on 15 July. He added NSFAS approved the institution to pay affected students an accommodation allowance of up to R2,500 a month.

He also said 374 Nelson Mandela University students affected by 2026 qualification code updates have been included in the current disbursement cycle, with payments scheduled for August as of 20 July.

At Unisa, Cassim said NSFAS processed 1,706 gap investigations, restoring funding for that number of students, and that a further 656 students will have gap funding finalised after quality assurance, bringing the Unisa total to 2,271 successful gap investigations.

What students say is needed

Student representatives emphasised decentralisation and accountability as steps to restore trust in the scheme. Masike urged NSFAS to locate officials closer to campuses so students can seek assistance in person and to support investigations into alleged corruption.

Next steps

NSFAS officials have outlined remediation in specific cases and said payments are being restored in waves for some affected students. Student leaders continue to press for broader structural changes, decentralised services and formal inquiries into the allegations of funds being redirected.