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Cuts to NSFAS Budget May Cause Student Protests



Cuts to NSFAS Budget May Cause Student Protests

Cuts to NSFAS Budget May Cause Student Protests, In a recent announcement, the National Student Financial Aid Scheme (NSFAS) revealed that budget cuts could lead to a reduction in funding for students in the 2024 academic year. This development has raised alarms among unions, organizations, and students, who fear potential protests as a consequence.

Budget Shortfall Projection

The Department of Higher Education disclosed a projected shortfall of R1.1 billion for the current financial period within universities. This shortfall is anticipated to escalate to R5.5 billion in the 2024/25 period and further increase to R8.2 billion in 2025/26.

Impact on TVET Students

Concerns have been raised regarding potential material shortfalls in supporting Technical and Vocational Education and Training (TVET) students. A decrease in headcount funded by NSFAS may amplify the likelihood of student protests.

Delayed NSFAS Allowances

The budget cuts and shortfalls could hinder NSFAS from disbursing allowances on time at the beginning of the academic year. This critical period for students, who heavily rely on these allowances, might exacerbate the chances of protests.

Estimations and Reduction in Funding

The Department estimates that a 10% reduction in university funding will result in 87,712 students not receiving NSFAS funding for 2024, a number that could increase to 120,976 students.


Concerns from Stakeholders

The South African Union of Students (SAUS) has voiced concerns about the challenges facing NSFAS and the negative impact on students. They emphasize the need for stable and efficient funding to ensure the success of funded students. The union recommends increased communication between NSFAS and students and suggests that department representatives visit institutions during the registration period.

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Universities South Africa (USAf) Worries

Universities South Africa (USAf) has also expressed apprehension about NSFAS challenges potentially leading to protests on campuses nationwide. The closure of NSFAS applications on January 31, 2024, raises difficulties for timely registration, with uncertainties about outcomes before campus begins. USAf underscores the importance of addressing student debt to prevent annual protests, labeling it a “source of student anguish and upheaval” at the start of each year.


The current scenario paints a challenging picture for students relying on NSFAS funding, raising concerns about the potential for protests. Stakeholders, including the government and institutions, need to address these issues promptly to ensure stability in the education sector and prevent disruptions that could negatively impact students. Communication, efficient funding mechanisms, and timely resolutions are crucial components in averting a crisis.

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