In a shocking revelation, Higher Education and Training Minister Nobuhle Nkabane has announced that South African universities and Technical and Vocational Education and Training (TVET) colleges collectively owe a staggering R11.94 billion to the National Student Financial Aid Scheme (NSFAS) for the 2017 to 2023 academic period.
The revelation, made in response to a question from the Democratic Alliance (DA) in Parliament, has sent ripples through South Africa’s higher education sector, highlighting significant financial strain within institutions that are already grappling with other challenges. According to the Minister, universities are responsible for R10.46 billion of the debt, while TVET colleges account for R1.48 billion.
These figures are part of a larger ongoing reconciliation process between NSFAS and the institutions, with efforts to settle disputes regarding assets and liabilities tied to student accounts still underway. The resolution of these issues is expected to be finalized in the near future.
The mounting debt is just one piece of a broader financial puzzle for NSFAS, which has faced criticism for delayed student allowance disbursements and persistent funding disputes. These issues have sparked protests at several institutions, including Northern Cape Urban TVET College, where students have expressed frustration over funding delays and mismanagement.
Amid the ongoing crisis, an audit by the Auditor-General of South Africa is in progress, aimed at identifying the root causes of these financial discrepancies and ensuring that accountability measures are implemented across the system.
As the government and institutions work to find a way forward, students and educational staff are left wondering how the significant debt will affect the future of NSFAS funding, and, more critically, whether it will impact access to education for South Africa’s most vulnerable students.
