What is happening?
The Special Investigating Unit (SIU) has returned over R1.7 billion to the National Student Financial Aid Scheme (NSFAS). This money was recovered from universities, TVET colleges, and former students who were not eligible for the funding but kept it. The total amount recovered so far stands at R2 billion, according to the SIU’s January 2026 update.
The funds were unallocated between 2016 and 2021 — meaning they were meant for NSFAS-qualifying students but were never used due to deregistration, institution changes, or system failures.
Why it matters to you
If you are a current or future NSFAS applicant, this recovery increases the pool of funding available for deserving students. The funds are being reallocated to support students’ living expenses, tuition, and allowances.
For former students or parents who accepted NSFAS funds they did not qualify for, the SIU is actively pursuing repayments. You may be contacted or need to come forward voluntarily to arrange a repayment agreement.
What you need to know
The SIU recovered the funds from:
- Former students and parents: R126.4 million
- Universities and colleges: R1.87 billion, including:
| Institution | Amount Returned |
|---|---|
| University of the Free State | R507.9 million |
| University of Pretoria | R400 million |
| Wits University | R450 million |
| University of Fort Hare | R277.6 million |
| Esayidi TVET College | R6 million |
| Motheo TVET College | R38.7 million |
| Majuba TVET College | R25.9 million |
| Northlink College | R33.3 million |
| Walter Sisulu University | R19.9 million |
| Tshwane North TVET College | R15 million |
| West Coast College | R5 million |
| University of Mpumalanga | R39.2 million |
| University of Zululand | R58 million |
These funds were previously kept beyond the allowed 12-month holding period after students deregistered or transferred.
What you should do next
If you are:
- A current or future NSFAS applicant
You do not need to take any action now. The recovered money will be redirected to support eligible students via NSFAS processes. - A former NSFAS recipient who was not eligible
You should urgently contact the SIU to arrange a repayment plan. Over 1,000 parents and students have already signed Acknowledgements of Debt (AoDs) and started repaying. - An institution holding NSFAS funds
Expect increased oversight. NSFAS will now implement a data-driven reporting framework and may shift to direct in-house payments to avoid middlemen.
