NSFAS
By Thobeka Makume
The Minister of Higher Education and Training, Dr Nobuhle Pamela Nkabane, has officially announced the appointment of a new National Student Financial Aid Scheme (NSFAS) Board, which will oversee the administration and distribution of financial aid to students across South Africa.
In a Government Gazette notice dated 18 February 2025, Dr Nkabane confirmed that the newly appointed board members will serve a four-year term, effective 01 February 2025. Dr Karen Stander has been appointed as the Chairperson of the board, which will play a crucial role in shaping the future of student financial aid in South Africa.
The appointments follow a Call for Nominations published under Government Notice No. 5116 in the Government Gazette No. 51043 on 13 August 2024. This process invited nominations from the public and relevant stakeholders, ensuring a fair and transparent selection process in line with section 5(3) of the NSFAS Act.
A New Leadership for NSFAS
The NSFAS board appointments come at a critical time, as the organisation has faced significant challenges in recent years, including funding shortfalls, administrative inefficiencies, and concerns over student accommodation fraud and delayed disbursements.
Dr Nkabane emphasised that the newly appointed board has the responsibility of enhancing transparency, accountability, and efficiency within the organisation. The appointments were necessitated by the conclusion of the term of the NSFAS Administrator, who was originally appointed under section 17A(3)(a) of the NSFAS Act.
The NSFAS board will be responsible for:
• Ensuring efficient allocation of financial aid to eligible students.
• Enhancing accountability and transparency in the disbursement of funds.
• Implementing measures to combat corruption and fraud in student financial aid.
• Improving the NSFAS direct payment system to address recent concerns about disbursement delays and unauthorised deductions.
• Strengthening student accommodation policies to protect vulnerable students from exploitation by unscrupulous landlords.
Newly Appointed NSFAS Board Members
The following individuals have been appointed to the NSFAS board, effective from 01 February 2025, for a four-year term:
Executive Leadership:
1. Dr Karen Stander – Chairperson
Board Members:
2. Ms. Ndileka Eumera Portia Loyilane
3. Mr. Richard Tlou Ramashia
4. Adv. Lavandran Nanda GoPaul
5. Ms. Philisiwe Sibiya
6. Ms. Clarida Elizabeth Simpson
7. Ms. Prishka Mahesh
8. Dr. Siyanda Mngadi
9. Ms. Karabo Mohale
10. Dr. Johanna Maphutha
11. Dr. Mugwena Maluleke
12. Dr. Marcia Socikwa
The board is expected to work closely with the Department of Higher Education and Training (DHET), public universities, Technical and Vocational Education and Training (TVET) colleges, and other stakeholders to ensure the smooth execution of NSFAS’ mandate.
Government’s Vision for NSFAS
Minister Dr Nobuhle Nkabane emphasised that the board will be instrumental in aligning NSFAS operations with section 29(1)(b) of the Constitution, which guarantees the right to further education.
“Recognizing that this right is progressive, the Board will ensure that financial aid is allocated in a manner that is equitable, transparent, and within the reasonable measures and resources available to the state, thereby making education progressively accessible to qualifying students,” said Dr Nkabane.This aligns with the government’s broader National Development Plan (NDP) goal of increasing access to higher education while ensuring that funding is sustainable and effectively managed.
Challenges Facing NSFAS and Expectations for the New Board
The appointment of a new NSFAS board follows a turbulent period marked by student protests, financial mismanagement claims, and administrative inefficiencies. Some of the key challenges the new board must address include:
- Delays in Funding Disbursements
In 2024, several universities reported delays in the payment of allowances, leading to protests from student organisations such as the South African Union of Students (SAUS) and the EFF Student Command (EFFSC). The board must ensure timely disbursement of funds to prevent disruptions to the academic year.
- Student Accommodation Crisis
There have been multiple reports of landlords exploiting students, including cases where landlords demand sexual favours in exchange for accommodation. The board will need to tighten regulations on student accommodation providers and strengthen monitoring mechanisms.
- Corruption and Fraud in NSFAS Payments
In recent years, NSFAS has been plagued by allegations of ghost students receiving financial aid, unjustified NSFAS payment deductions, and unauthorised disbursements. The board must implement stricter financial oversight and risk management protocols to prevent such abuses.
- Expansion of the NSFAS Loan Scheme
The recent introduction of the NSFAS loan scheme for students from “missing middle” households requires strong governance to ensure fair access and prevent debt accumulation issues that could lead to student loan crises in the future.
- Balancing Budget Constraints with Increasing Demand
With rising student enrolment numbers, NSFAS must expand its funding reach while operating within budgetary constraints. The board must work with National Treasury to explore sustainable funding models, including private sector partnerships.
Student Reactions to the Appointments
The announcement of the new NSFAS board has drawn mixed reactions from student organisations, universities, and advocacy groups. While some have welcomed the appointments, others remain sceptical about whether the new board will be able to resolve long-standing issues.
Positive Reactions:
• South African Union of Students (SAUS): “We welcome the new board and look forward to working with them to ensure that students receive their allowances on time and that accommodation issues are addressed.”
• University of Cape Town SRC: “We hope that the new NSFAS leadership will prioritise transparency and ensure a student-centric approach in decision-making.”
Concerns from Critics:
• EFF Student Command (EFFSC): “We demand a complete overhaul of NSFAS policies. We will hold the new board accountable to ensure no student is left without funding.”
• Independent Higher Education Advocate: “This board must act swiftly to correct past administrative failures and ensure no repeat of the disbursement delays that plagued previous years.”
Next Steps and Oversight
To ensure accountability, the NSFAS board will:
1. Conduct an internal audit of all pending student funding applications.
2. Engage student representative councils (SRCs) at all universities and TVET colleges to address pressing concerns.
3. Submit a progress report to the Parliamentary Portfolio Committee on Higher Education within the first six months of its term.
4. Launch an independent investigation into past NSFAS corruption allegations and report on remedial actions.
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