NSFAS owes South African universities R10.49 billion
South Africa's National Student Financial Aid Scheme (NSFAS) has reported a budget deficit of more than R15 billion, of which around R10 billion is owed to universities. Payment delays are putting pressure on the cash flows of higher education institutions and contributing to growing student debt, Daily Maverick reports.
NSFAS Chief Financial Officer Wasim Carrim linked the budget problems to rising student housing costs. According to him, the scheme provides accommodation for nearly 95% of university students and spends more on this than on tuition fees. Carrim said NSFAS is increasingly moving away from its core task of funding students with financial needs who have the required academic results.
Debt to universities
Suspended NSFAS administrator Professor Hlangeni Mathebula told a parliamentary committee that the scheme owed universities R10.49 billion for tuition. Student payments were mostly up to date, according to the publication, but universities had significant outstanding NSFAS obligations. Mathebula said the scheme did not have the funds to pay the large amounts and that the Department of Higher Education and Training should seek assistance from the National Treasury.
According to Mathebula, NSFAS owed the University of South Africa (Unisa) R405 million, while its debt to Stellenbosch University was approaching R700 million. Deputy Director-General for University Education at the Department of Higher Education and Training Thandi Lewin described the situation as urgent. She said the department, together with NSFAS, could ask the treasury to release part of a later funding tranche early.
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Consequences for students
The University of Pretoria said NSFAS owed it R331 million for the seven months ending in July 2026. Institution spokesperson Rikus Delport said non-payment affects the university's cash flow and forces it to defer or reprioritize spending. According to him, the debt concerns unpaid tuition, while the R52,000 accommodation cap did not cause a payment shortfall for this university.
The University of the Witwatersrand confirmed that a significant portion of NSFAS funds for tuition for the 2026 academic year had still not arrived. At the University of Cape Town, as of August 2026, 3,269 NSFAS-funded students had debts due to the difference between the scheme's housing allowance and the actual cost of accommodation. The university projected that the total deficit caused by this restriction in 2026 would amount to R150 million.
The University of Cape Town allowed NSFAS students who meet academic requirements to register despite debts, provided they meet academic progress requirements. The institution said this helps students continue their studies, but at the same time increases student debt and pressure on the university's financial sustainability.
