While the National Student Financial Aid Scheme (NSFAS) aims to ensure students live in learning-conducive environments, MPs say the timing of the cancellations was poor and could harm students.
“When cancellations happen during the academic term or trimester, it creates serious challenges. Students are left stranded, unable to graduate, and burdened with debt for decisions they had no control over,” said Committee Chairperson Tebogo Letsie.
The government briefed the committee this week on key NSFAS matters, including 2025 funding decisions, allowance disbursements, and accommodation challenges.
NSFAS offers bursaries and student loans to eligible students at universities and TVET colleges. This funding covers tuition, registration, and includes allowances for food, accommodation, and learning materials.
Accommodation Cancellations Under Fire
Letsie backed the removal of unaccredited housing but warned against making such decisions mid-term. He urged NSFAS to fast-track the accreditation of all student accommodation.
Mid-Year Defunding Sparks Concern
The committee also criticised NSFAS’s mid-year defunding of students during the 2024 academic year. Institutions that had already budgeted for these students were left financially vulnerable.
NSFAS's operational shortcomings are exacerbating student debt levels and jeopardising students' academic success,
They added that delays in confirming student funding had serious knock-on effects across the sector.
Need for Better Communication
MPs called for improved coordination between NSFAS, institutions, and students. They say poor communication and delayed decisions are placing students at risk.
