Higher Education Minister Buti Manamela. Pic Govza
Thokozile Mnguni
South Africa’s student funding system has entered a new phase of intervention after Higher Education Minister Buti Manamela placed the National Student Financial Aid Scheme under administration, citing ongoing governance and financial challenges.
The move marks another major intervention at the student funding body, which supports thousands of students from low-income households across the country.
Announcing the decision, Manamela said, “After careful consideration of the legal, governance, financial and operational circumstances affecting NSFAS, I have taken the decision to place NSFAS under administration and appoint an administrator.”
He said the step followed repeated attempts to restore stability that had not delivered the required progress.
“This decision was not taken lightly, but it is necessary to protect the integrity of the institution, restore sound governance, and ensure that NSFAS is able to fulfil its mandate to students,” Manamela said.
He added that the administration process is aimed at rebuilding confidence in the institution and strengthening accountability.
“Our priority is to ensure that students are not negatively affected and that the funding system continues to function while corrective measures are being implemented,” he said.
The National Student Financial Aid Scheme has faced sustained criticism in recent years over delayed payments, administrative inefficiencies and governance disputes, raising concerns among students, universities and policymakers.
Under the intervention, an appointed administrator will assume day-to-day control of the institution while measures are implemented to stabilise operations and rebuild governance structures.
The Department of Higher Education and Training confirmed that student funding processes and support services will continue throughout the intervention period.