The National Student Financial Aid Scheme (NSFAS) is under renewed pressure after Public Protector Advocate Kholeka Gcaleka issued a Section 7(9) notice citing systemic deficiencies in the scheme’s administration, governance, funding, coordination and oversight.
The notice draws on a Special Investigating Unit (SIU) probe conducted under Proclamation R88 of 2022. The SIU found that more than 40,000 students were improperly funded across 76 higher education institutions, to the value of approximately R5.1 billion. Recoveries to date exceed R2 billion. Gcaleka said there is “prima facie evidence of probable systemic maladministration,” based on SIU findings, complaints to her office, stakeholder engagements and other oversight reports.
Concerns include chronic funding delays and unresolved student queries. NSFAS reported it was unable to resolve 80% of contact-centre queries that required escalation. The Public Protector also highlighted repeated governance failures, including three interventions under section 17A of the NSFAS Act in the past eight years in 2018, 2024 and 2026, the 2023 termination of former CEO Andile Nongogo, prolonged periods with acting executives, and the dissolution of the board in 2024.
The findings come amid further Instability. Last week, the Pretoria High Court suspended the appointment of administrator Professor Hlengani Mathebula, who was installed after Higher Education Minister Buti Manamela placed NSFAS under administration in May 2026. The court reinstated remaining board members pending a full review.
NSFAS also faces a growing R15 billion funding shortfall that threatens the sustainability of fee-free higher education, with more than 660,000 students approved for support in 2026.
Gcaleka has proposed remedial actions with deadlines for the Minister, NSFAS and institutions, including an integrated plan for the 2027 academic year due by 1 November 2026. With students, parents and universities watching closely, uncertainty continues to deepen around the future of South Africa’s key student funding vehicle.
