The National Student Financial Aid Scheme (NSFAS) has sought to clarify the recent governance and administrative challenges it’s been facing. 

This is after board Chairperson Karen Stander blamed a R10.6 billion oversubscription in university funding for widespread student registration issues during the 2025 academic year. 

Stander attributed the shortfall to several key factors, including a growing number of qualifying students, the ongoing cost-of-living crisis, expanding household eligibility, and a decline in state resources in real terms. 

NSFAS has been facing mounting criticism over its operational failures, which have affected thousands of students at universities and TVET colleges.  

[WATCH] NSFAS spokesperson Ismael Mnisi says many students who are eligible for financial aid are not receiving it because of a lack of funds. He adds that they are oversubscribed and are discussing the scheme’s funding model with the National Treasury. pic.twitter.com/ZTJQzzW6bn

— SABC News (@SABCNews) August 27, 2025

NSFAS CEO Waseem Carrim says shifting NSFAS from being a loan-based scheme to a bursary without changing the organisation structure has led to the fund not being in a good position to be able to support students. 

 “We need to reflect on some of the decisions that have been taken around NSFAS – particularly the one decision which shifted it away from being a loan-based scheme, into a bursary-based model. That was a very quick decision that was taken, and the organisational structure design did not actually evolve with that decision. Now, what you have is that it’s seven or eight years later, and in that time, NSFAS has had a great deal of leadership instability. It’s had two administrators, two different boards that have been dissolved, nine CEOs in nine years, and all that instability has led to the fund not being in a good position to be able to support students.”

🎥 We’re LIVE! Tune in to the NSFAS Board Inaugural Media Briefing for key updates on student funding, 2025 applications, ICT upgrades & more.

🔴 Watch here: https://t.co/IEyHjEa4lt#NSFAS #Transparency #EducationSupport #StudentSuccess #EducationMatters

— NSFAS (@myNSFAS) August 27, 2025