HomeNSFAS NEWS10% University Funding Reduction Impact On NSFAS Students - A Critical Analysis

10% University Funding Reduction Impact On NSFAS Students – A Critical Analysis

In todays latest NSFAS News – 10% University Funding Reduction Impact On NSFAS Students – A Critical Analysis

Note: The following article provides a comprehensive analysis of the potential consequences of a 10% reduction in university funding on students. It explores the challenges faced by the National Student Financial Aid Scheme (NSFAS) and highlights the importance of stakeholder engagement in securing the academic futures of South African students.

The Department of Higher Education and Training (DHET), student leadership, university representatives, and the National Student Financial Aid Scheme (NSFAS) have recently come together to discuss the preparations required for a smooth academic year. One of the key concerns raised during these discussions is the potential impact of a 10% reduction in university funding on students. This reduction could leave over 87,000 students unfunded in 2024, according to calculations presented by the Acting CEO of NSFAS, Masile Ramorwesi.

Challenges Faced by NSFAS

The NSFAS board chairperson, Ernest Khosa, emphasized the importance of firm consequence management to address issues related to direct payments. An investigation conducted in 2023 revealed possible relationships between key individuals, including NSFAS CEO Andile Nongogo, and Fintech companies appointed to pay allowances directly to students. This uncovered a potential corruption scandal, leading to the termination of contracts with these companies.

Furthermore, NSFAS has faced other challenges, including a legal dispute initiated by the CEO following an investigation by Werksmans Attorneys into allegations and a review of procurement systems. These challenges have put NSFAS under significant scrutiny, affecting its ability to ensure timely allowance payments, particularly at the beginning of the academic year.

Potential Consequences of Budget Cuts

The budget cuts imposed by the National Treasury have raised concerns about the potential impact on NSFAS. The chairperson of NSFAS highlighted the potential difficulties in making timely allowance payments due to these budget cuts. The reduction in funding could leave a significant number of students unfunded, jeopardizing their academic futures.

Calculations presented by the Acting CEO of NSFAS indicate that a 10% reduction in university funding could result in 87,712 students being left without financial support in the 2024 academic year. This alarming figure highlights the urgent need for proactive measures to mitigate the adverse effects of budget cuts on higher education institutions.

Stakeholder Engagement and Collective Responsibility

The Higher Education Committee Chairperson, Nompendulo Mkhatshwa, stressed the importance of honest and transparent stakeholder engagement in addressing the challenges faced by the higher education sector. She emphasized that university councils play a crucial role in supporting accountability and ensuring preparedness for the upcoming academic year.

Committee members agreed that attributing failures solely to NSFAS is not productive. Instead, they emphasized the collective responsibility of all stakeholders involved in securing the academic futures of South African students. By working together, universities, TVET colleges, student leadership, and government bodies can reduce the impact of challenges and create a more supportive environment for students.

Enrollment Projections and Funding Disparities

Universities South Africa (USAf) has projected that over 210,000 first-time students will enroll in programs at South Africa’s 26 public universities in 2023. This will bring the total enrollment in the public sector to over 1.1 million students, with approximately 60% of students being female.

The South African Public Colleges Organisation (SAPCO), representing the country’s 50 TVET colleges, has called for greater equilibrium in funding between TVET College students and university students. They argue that TVET students receive less funding, particularly when it comes to living allowances, creating an imbalance that needs to be rectified. SAPCO also proposed that NSFAS and service providers enter into direct leases and agreements on rental rates to address the accommodation challenges faced by students.

Accommodation Challenges and Potential Instability

The South African Union of Students (SAUS) highlighted the persistent challenges faced by both university and TVET students in securing accommodation each year. They called for closer monitoring of NSFAS by the Department of Higher Education and Training to mitigate potential instability caused by accommodation issues.

SAUS stressed that these challenges disproportionately affect students from economically disadvantaged backgrounds. The lack of stable accommodation can hinder their academic progress and exacerbate existing inequalities. Therefore, addressing this issue is crucial to ensuring equal opportunities for all students.

Accessing Sassa Grants – A Lifeline for Vulnerable South Africans

Switching gears, it is important to acknowledge the role of the South African Social Security Agency (Sassa) in providing permanent social grants to qualifying individuals. These grants serve as a lifeline for vulnerable South Africans with limited or no means of making an income. They include the Older person’s grant, Child Support grant, Disability grant, War Veterans grant, Foster child grant, and Grant in Aid.

Collecting Sassa Grants

To access Sassa grants, beneficiaries usually need a bank account or a Sassa Gold card, which can be used at various retail outlets such as Pick n Pay, Shoprite, Boxer stores, Usave stores, and Checkers. However, Sassa has introduced a new grant payment collection method that allows beneficiaries to collect their grants without a Sassa Gold card. This alternative method requires beneficiaries to provide their Identification Document, a valid cellphone number, and their Sassa Gold card pin.

Beneficiaries also have the option of collecting their social grant payments through mobile cash pay points. It is important to note that this option is subject to specific times during the grant payment cycle.

Grant Payment Information and Schedule

Beneficiaries can check their grant payment information on the official Sassa website. Additionally, websites like Skills Portal provide information on grant payment dates for the year. It is crucial for beneficiaries to stay informed about the payment schedule to ensure timely access to their social grants.

Below are the social grant payment dates for November 2023:

  • Older Persons Grant: 1 December 2023
  • Disability Grant: 4 December 2023
  • Children’s Grants: 5 December 2023

Beneficiaries are advised not to rush to withdraw their payments on the first day, as the funds will remain in their accounts until needed.


The potential consequences of a 10% reduction in university funding are significant, with over 87,000 students at risk of being left unfunded in 2024. Addressing the challenges faced by NSFAS and ensuring timely allowance payments are essential for the academic futures of South African students. Stakeholder engagement, collective responsibility, and equitable funding distribution between TVET colleges and universities are crucial in mitigating the impact of budget cuts.

Furthermore, the provision of Sassa grants plays a vital role in supporting vulnerable South Africans. Beneficiaries can access these grants through various methods, including traditional bank accounts, Sassa Gold cards, or the new grant payment collection method. Staying informed about grant payment dates and utilizing the available resources is essential for a smooth and reliable process.

By addressing these issues, South Africa can create a more inclusive and supportive higher education system, ensuring that all students have equal opportunities to succeed.

Israel Wellington Jeremiah
Israel Wellington Jeremiah
I work to provide access to global experiences to all through educational opportunities like scholarships, training and conferences, fellowships, grants and awards, jobs, internships , learnerships and volunteer programs.