Manamela warns NSFAS faces about R15bn funding shortfall

Higher Education Minister Buti Manamela has told Parliament that the National Student Financial Aid Scheme (NSFAS) is facing a funding shortfall of about R15 billion, driven by rising student demand while government allocations remain effectively fixed.

What the minister told MPs

Manamela addressed the Portfolio Committee on Higher Education on Wednesday and outlined how the scheme’s shortfall has widened over recent years. He said the shortfall grew from around R2.5 billion in 2018 to about R13.5 billion last year, and had now reached roughly R15 billion.

Pressure from increasing student numbers

The minister attributed the gap not to mere overspending by NSFAS but to a growing mismatch between the number of students requiring financial aid and the funding available. He cited the increasing number of learners progressing from Grade 12 into universities and TVET colleges as adding pressure on the scheme.

Policy versus budget realities

Manamela highlighted a tension between government policy and budget constraints. He said government has committed to providing fee-free higher education, while NSFAS receives an allocation that is “almost set in stone in the medium-term expenditure framework and in the budget for a cycle.”

“These shortfalls are essentially a result of the demand for higher education. These shortfalls have compounded from just around 2.5 billion rands in 2018, and our current estimate, I think last year, was around 13.5 billion; our current estimate is around 15 billion,” the Minister told MPs.

Choices ahead

Manamela said government must find the funds to meet its commitment to fee-free higher education, or else “rethink our approach towards a fee-free higher education.”