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NSFAS Has Been Placed Under Administration



NSFAS Has Been Placed Under Administration

The National Student Financial Aid Scheme (NSFAS) is under new management following the dissolution of its board. This pivotal decision was announced by the Minister of Higher Education and Training, Dr. Blade Nzimande, who has placed the organization under administration to enhance its operational effectiveness. This article explores the reasons behind this significant move, its implications, and what the future holds for NSFAS.

NSFAS Has Been Placed Under Administration

The recent changes at NSFAS are a response to ongoing operational challenges, including delayed disbursement of student allowances. By placing NSFAS under administration, the Minister aims to address these issues directly and improve the efficiency of financial aid delivery to students.

Reasons for Dissolution and Administration

NSFAS has faced criticism for inefficiencies, with significant delays in student allowance distribution. These delays were reportedly caused by universities and colleges failing to meet deadlines for submitting accurate student data. The decision to place NSFAS under administration is intended to streamline operations and enhance service delivery, ensuring students receive their financial aid on time.

Stakeholder Reactions

South African Union of Students (SAUS)

The SAUS has openly welcomed the dissolution of the NSFAS board. They criticize the board’s effectiveness and are advocating for a complete restructuring of the scheme to better meet the needs of students. Despite the board’s dissolution, SAUS remains hopeful that NSFAS will manage to continue allowance disbursements, although there are concerns about potential delays for April 2024.

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South African Students Congress (SASCO)

Similarly, SASCO supports the decision to dissolve the NSFAS board, calling for urgent structural reforms within the organization. They emphasize the need for administrative changes to alleviate bureaucratic hurdles that currently impede student access to financial assistance.

Challenges Faced by NSFAS

The transition to Direct Payment Service Providers in April 2024 has introduced new challenges. The implementation of the NSFAS bank account system in 2022 has been fraught with issues, including high bank charges that provoked student protests. Additionally, the firing of the NSFAS CEO over potential conflicts of interest and corruption claims within the board further complicates the situation.

What’s Next for NSFAS?

An administrator will now oversee the operations of NSFAS with specific focus areas:

  • Ensuring timely funding decisions and accurate student data collection: Critical for the smooth operation of financial aid disbursements.
  • Streamlining the application process for 2025 scholarships and loans: Simplifying the process will help reduce the time and confusion currently associated with applying for aid.
  • Developing a clear plan for the 2025 funding cycle: This includes defining roles for all parties involved to ensure accountability and efficiency.
  • Strengthening governance and management structures: To prevent future administrative and financial issues.
  • Investigating and resolving past problems: To ensure smoother operations moving forward.


The restructuring of NSFAS is a significant step towards improving the delivery of financial aid to South African students. By addressing the administrative challenges and implementing strategic changes, the scheme aims to become more efficient and responsive to the needs of its beneficiaries. Minister Nzimande is expected to provide more details on the future plans for NSFAS on April 14, 2024, which will be a crucial date for students affected by the recent changes.

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