The National Student Financial Aid Scheme's acting CEO, Waseem Carrim, has detailed a strategy to stabilize operations for the 2026 academic year, addressing funding shortages and accommodation issues. This comes as Finance Minister Enoch Godongwana questions the scheme's future due to its reliance on external providers. Carrim dismissed closure suggestions, emphasizing NSFAS's unique role in student support.
The National Student Financial Aid Scheme (NSFAS) is working to recover from a challenging period involving funding shortfalls and accommodation disputes. Acting CEO Waseem Carrim explained that the organization developed an internal academic timetable, consulting stakeholders like universities, colleges, and landlords before publishing it in December. This plan aligned with university calendars, student residence admissions, appeals processes, and the release of matric results on January 12, 2026. The goal was to issue funding decisions before these results to ease pressure on students transitioning to higher education or Technical, Vocational Education and Training colleges.
Universities have noted some progress. At Cape Peninsula University of Technology (CPUT), spokesperson Lauren Kansley stated, “Overall, we have good alignment with NSFAS and are also now trialing the Pilot Accommodation Project, so we are working together on a few things. Our relationship continues to strengthen year on year.” Similarly, University of Johannesburg's Lebogang Seale highlighted benefits for returning students through timely result uploads and funding releases in January.
However, Carrim expressed disappointment with CPUT's ongoing housing issues, where some first-year students have reportedly slept in kitchens and study rooms. He indicated NSFAS might intervene directly to prevent students from being left without shelter.
Financially, NSFAS faced a R10.6-billion shortfall last year, recovering R1.7-billion through government efforts and investigations. To manage cash flow, the R5,600 annual book allowance was split into two payments, with the second in March. Carrim noted this also aims to encourage better student spending on essentials like books and housing.
Finance Minister Enoch Godongwana recently criticized NSFAS for outsourcing core duties to three service providers, asking, “NSFAS is supposed to be paying universities for student accommodation and everything else... Why should we keep them?” Carrim countered that no other entity offers a central application and disbursement system, and closure would require new legislation.
NSFAS disbursed over R3.6-billion in February for books and accommodation, followed by more than R2-billion in March for university allowances. For TVET colleges, payments included over R600-million for tuition in February and R592-million for allowances. Of 101,000 appeals, 22,000 were approved and 18,000 rejected.
Students like Samkelo Mkenku at CPUT reported smooth funding approval, allowing purchases of groceries and clothes. Mpho Sebutse, however, struggled with accommodation despite quick eligibility confirmation. Looking forward, Carrim prioritized a sustainable funding model and addressing the student housing backlog, especially in rural areas. NSFAS plans to manage landlord accreditation in-house, ending contracts with partners that took a 5% commission.
