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Higher Education Minister Buti Manamela has issued a directive to NSFAS after a 2024/25 audit exposed major governance, funding and student accommodation failures.
The directive follows a joint accountability meeting held on 25 March 2026 with the NSFAS Board, Auditor-General and department leadership.
The findings raise concerns about how student funding is managed and whether the system is protecting the most vulnerable students.
What happened
The Auditor-General gave NSFAS a disclaimer of opinion, the most serious audit outcome.
This means auditors could not trust the financial records due to major failures in controls and accountability.
Key findings from the audit include:
- 822 deceased individuals still received NSFAS funding
- Over 14,000 ineligible students (above income threshold) were funded
- 321 students received both NSFAS and SRD grants
- Thousands of students who failed academic requirements continued receiving funding
The report also identified nine material irregularities, including new cases.
The Minister has now ordered:
- Immediate forensic investigations
- Collaboration with the Special Investigating Unit
- Referral of fraud cases to authorities
Key details
The audit also exposed a student accommodation crisis:
- Students housed near taverns and unsafe areas
- Long travel distances with poor transport access
- Landlords threatening students over unpaid NSFAS allowances
- Confiscation of student belongings
The Minister called these conditions a violation of student dignity.
In response:
- All private accommodation providers will be audited
- Non-compliant providers will be suspended
- A new accommodation policy is expected by end of April 2026
Why it matters
This affects more than 800,000 students who depend on NSFAS.
The findings show:
- Funding meant for poor students may have been misdirected
- Weak systems allow fraud, errors or abuse
- Students are exposed to unsafe living conditions
For many families, NSFAS funding is the only way to access higher education.
If the system fails, students risk:
- Dropping out
- Losing accommodation
- Facing financial hardship
What you need to know
- NSFAS funding for qualifying students is not being stopped
- Investigations target fraud and system failures, not legitimate beneficiaries
- 7,805 student appeals are still unresolved
- 98.8% of appeal delays are linked to system failures
- Government wants appeals resolved in under 70 days
NSFAS must submit a full recovery and reform plan by:
- 30 April 2026 (main report)
- 31 May 2026 (progress update)
What to do next
If you are a student:
- Continue attending classes — funding is not cancelled
- Track your NSFAS status and appeal progress
- Report unsafe accommodation conditions
- Keep proof of payments and communication
If you have appealed:
- Expect faster processing timelines to be introduced
- Follow up regularly with your institution
Where to get help
- Contact your university financial aid office
- Report accommodation issues through NSFAS channels
- Watch for official NSFAS updates and deadlines
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