Neelam Rahim | neelam@radioislam.co.za
3-minute read
13 February 2025 | 12:42 CAT

Policymakers must act swiftly to address the growing concerns surrounding NSFAS and ensure equitable access to higher education, empowering South Africa’s youth with the skills needed for long-term economic stability. (Photo by Gallo Images/Brenton Geach)

The National Student Financial Aid Scheme (NSFAS) remains a critical support system for low-income students in South Africa. However, as public universities struggle with capacity constraints and private institutions remain excluded from funding, experts are calling for a major policy shift.

Dr. Linda Meyer, speaking to Radio Islam International on the issue, highlighted the pressing financial and administrative challenges plaguing NSFAS. “The financial sustainability of the scheme is a key concern,” she noted, explaining that NSFAS currently absorbs a significant portion of the Department of Higher Education and Training’s budget. “It takes up around R60 billion of the R140 billion allocated, with universities struggling as NSFAS draws from their operational funds.”

Beyond financial strain, NSFAS is also riddled with inefficiencies, delays in disbursements, and governance failures. “Every year, students find themselves without accommodation and unable to access their funds due to maladministration and policy inconsistencies,” Dr. Meyer stated.

A major issue, she emphasized, is the exclusion of private higher education students from NSFAS support. “Each year, around 600,000 matriculants qualify for higher education, but public universities can only accommodate 202,000,” she explained. The remaining students either attempt to enrol in Technical and Vocational Education and Training (TVET) colleges—often facing employment barriers—or are left without options due to financial constraints.

Private institutions, Dr. Meyer argued, provide a viable alternative, yet they remain unsupported by NSFAS. “Government does not have the funds to build new universities quickly enough to meet demand. Even if construction started now, the first-year intake of a new university would only accommodate around 1,000 students,” she pointed out. “So why not allow students to access NSFAS grants to study at private institutions instead of leaving them stranded?”

She further explained that a broader systemic reimagination of NSFAS is required, suggesting that direct university payments could eliminate corruption and inefficiencies. “If the Department of Higher Education and Training funded universities directly, we could remove the middleman, ensuring that funds reach students without delays or mismanagement,” she said.

Given South Africa’s alarming youth unemployment rate—estimated at around 60% under the expanded definition—investing in higher education is non-negotiable. “It’s not that there aren’t jobs, but that graduates lack the necessary skills. A restructured NSFAS could play a crucial role in addressing this gap and fostering economic growth,” Dr. Meyer concluded.

With increasing calls for NSFAS reform, all eyes are on policymakers to act decisively in addressing these urgent concerns.

Listen to the full interview on Your World Today with Mufti Yusuf Moosagie and Dr. Linda Meyer here.