The Higher Education Minister has confirmed plans to decentralise the National Student Financial Aid Scheme (NSFAS) operations.
Higher Education Minister Nobuhle Nkabane announced that NSFAS will move its headquarters out of Cape Town and establish regional offices in provinces across the country.
Currently, NSFAS is paying R2.5 million per month to lease its Cape Town office. A legal review is underway to determine whether this lease can be reduced or terminated and the NSFAS legal services unit is finalising a comprehensive review of the lease agreement.
According to Minister Nkabane, new offices are planned for KwaZulu-Natal, Eastern Cape, and Gauteng, with an expected launch at the beginning of the 2025 academic year.
This decentralisation aims to reduce travel costs for students while improving access to NSFAS services. By offering more localised support, the organisation hopes to enhance its efficiency, reduce delays, and better meet the needs of students.
Building on Earlier Plans
The Minister's update aligns with the goals outlined by Acting NSFAS Chairperson Prof. Lourens van Staden earlier this year. Prof. van Staden stated that establishing regional offices is part of ensuring the bursary scheme has a presence in all provinces, ultimately fostering a more harmonious academic environment across institutions.
NSFAS Cape Town Office Controversy
The high cost of NSFAS’s Cape Town office has been a source of public criticism. The decision to move to this office was initially justified by space constraints at the previous location in Wynberg. However, the Cape Town headquarters has faced backlash for being both expensive and inaccessible to many students outside the city.
In early 2023, UDM leader Bantu Holomisa raised concerns about NSFAS’s rental payments, calling for an investigation into the R20 million allegedly paid for unused months before the scheme moved in.
Similarly, the Organisation Undoing Tax Abuse (OUTA) highlighted the disproportionate spending on office costs per employee compared to the annual student accommodation allowance.
By decentralising operations and reducing costs, NSFAS aims to refocus its resources on improving student support across the country.
