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Godongwana: R700 million NSFAS admin cost could fund 9,000 more students
South Africa’s student funding crisis is back in the spotlight. This time, it is not about who qualifies or when allowances will be paid. It is about the cost of running the very institution meant to help students in need.
Finance Minister Enoch Godongwana has sharply criticised the National Student Financial Aid Scheme, better known as National Student Financial Aid Scheme, arguing that the money spent on its administration could be put to far better use.
His numbers are hard to ignore.
R700 million a year
According to Godongwana, the government spends about R700 million annually on administering NSFAS. In his view, that figure is difficult to justify when thousands of young South Africans are still desperate for funding.
He said that if that R700 million were redirected, it could cover the tuition fees of around 9,000 additional students. For families already stretched by rising living costs, that comparison lands heavily.
The minister has previously said that if it were entirely up to him, he would close the institution without hesitation. His comments have drawn strong reactions from those who believe NSFAS, despite its problems, remains essential to widening access to higher education.
Godongwana insists his criticism is not about scrapping student funding. Instead, he argues that inefficiencies within the institution are draining resources that should be reaching students.
Outsourcing and inefficiency
The finance minister has also taken aim at NSFAS for outsourcing work that it was originally created to handle. He pointed out that the scheme is meant to pay universities directly for student accommodation and related services, yet additional service providers have been brought in to manage parts of that process.
In a country where university fees remain out of reach for many households, the optics matter. Every rand spent on administration is a rand not spent on tuition, books or accommodation.
Corruption concerns remain
The concerns about governance are not new. NSFAS has faced repeated reports of mismanagement and corruption over the years, issues that have undermined public trust.
NSFAS Chief Executive Officer Waseem Carrim has acknowledged that corruption remains a serious problem. He has said that irregularities have affected not only the administration of bursaries and loans but also the accommodation sector linked to student placements.
Carrim has stated that the NSFAS board is working with oversight bodies such as the Auditor General, the Public Protector, law enforcement authorities and the Special Investigating Unit. The SIU has already helped recover close to R1.8 billion in funds, with efforts ongoing to ensure any misused money is returned and properly allocated.
A bigger question about student funding
For many South Africans, the debate goes beyond one institution. It touches on the broader question of how public money is managed in a country where demand for higher education far exceeds available resources.
NSFAS has played a central role in expanding access to universities and TVET colleges, especially since the introduction of free higher education for qualifying students from poor and working-class households. Yet administrative failures and delayed payments have repeatedly disrupted academic years and sparked student protests.
Social media reactions to Godongwana’s remarks have been divided. Some users have backed his call for tighter controls and leaner operations. Others argue that dismantling or weakening NSFAS could harm the very students it was designed to support.
What is clear is that student funding remains one of the most politically sensitive issues in South Africa. With billions allocated to higher education each year, questions about efficiency, accountability and value for money are unlikely to fade anytime soon.
As universities prepare for another academic cycle, the pressure is mounting. For thousands of prospective students, the debate is not abstract. It is about whether they will have a place in lecture halls this year, or whether financial barriers will once again stand in the way.
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Source: IOL
Featured Image: Inside Education.
