‘Too low and too slow’: Manamela concedes delays as NSFAS missing‑middle applications surge

More than 53,000 students applied for the NSFAS missing‑middle loan in 2026, but only a small fraction have been assessed as eligible and even fewer have had loans concluded and disbursed, Higher Education Minister Buti Manamela told the National Council of Provinces.

Applications surge, conversions lag

Manamela said the missing‑middle loan scheme, which was introduced in 2024, received 53,575 applications for 2026. Of those, 3,102 applicants had been assessed as eligible. He warned that an application, an eligibility decision, a signed loan agreement and an actual disbursement were separate stages, and that the conversion of eligible applicants into concluded and disbursed loans remained “too low and too slow.”

Early financing and prior approval rates

The scheme was initially capitalised with R3.8 billion, made up of R1.5 billion from the National Skills Fund and R2.3 billion from sector education and training authorities. Manamela said NSFAS received 10,186 loan applications in 2025 and approved 2,686 of them.

Implementation obstacles

Manamela outlined several operational factors affecting rollout: outstanding institutional memoranda of agreement, the finalisation of loan agreement forms, qualification and document verification, and delays in institutions submitting registration information. He said several institutions had signed required agreements and engagements with remaining institutions were continuing.

The department and NSFAS are taking corrective steps, Manamela said, including finalising contractual instruments and institutional agreements, reconciling application‑to‑disbursement records for 2024–2026, and improving communication with students and institutions. He also said the department was reviewing the eligibility and application process to make it easier for qualifying students to complete.

Where a wider funding model fits in

Manamela acknowledged that the missing‑middle instrument had not yet achieved the “operational maturity or reach which was originally intended.” He said the immediate task was to convert eligibility into actual funding more quickly while work continued on a broader, stable and sustainable student funding model.

Responding to questions about long‑term sustainability, Manamela said the sustainability of student funding was under review and noted that the information before him did not identify a post‑2017 feasibility study. He listed factors the broader model would need to consider, including fiscal affordability, projected growth, the real cost of tuition and accommodation, income verification, institutional administrative capacity and fair loan and repayment agreements.

Alternatives and broader support

Manamela emphasised that students who meet NSFAS bursary criteria should continue to receive bursary support. For those outside standard bursary criteria, possible routes include the NSFAS missing‑middle loan, university financial aid and profession‑specific bursaries. He also said the National Skills Fund had set aside about R1 billion for PhD and postgraduate students.

Manamela rejected the characterisation of the system as a “loan‑centric” model, saying that close to 800,000 students were accessing higher education free of fees while the missing‑middle loan provided an additional route for others.

Next steps and timeline

Manamela said the next step was to take the matter to Cabinet and that government intended to roll out elements of a sustainable student funding model from next year. He identified 2027 as the main target for the model to mature into a system fit for the country’s demands.

“There has to be elements of a sustainable student funding model that is quite inclusive and that covers all of these people,” Manamela said.

He added that the immediate priority was ensuring an effective working loan scheme at NSFAS for the 2027 academic year while continuing work on a comprehensive student funding model.