The National Student Financial Aid Scheme (NSFAS) is not a private company or political body. It is a public entity, established by South African law to manage student financial aid for higher education.
It operates under two key laws: the NSFAS Act (No. 56 of 1999) and the Public Finance Management Act (PFMA). These laws determine how NSFAS is run, who controls it, and how money is managed.
What is NSFAS and why it was created
NSFAS was created to help eligible students access public higher education by offering bursaries and loans. It replaced the earlier Tertiary Education Fund of South Africa (TEFSA) in 1999.
The law says its aim is to:
- Redress past discrimination
- Ensure fair access to higher education
- Support the country’s skills development goals
NSFAS is not just a funding scheme — it’s a legal structure with defined responsibilities and public accountability.
How NSFAS is legally governed
NSFAS is governed by the NSFAS Act, which gives it powers to:
- Give loans and bursaries to eligible students
- Recover loans after students graduate
- Enter into legal agreements with universities and TVET colleges
- Develop rules for who qualifies
Because it is a public entity, NSFAS must also follow the Public Finance Management Act (PFMA) and Treasury Regulations. These rules cover:
- Strategic plans and budgets
- Annual reports and audits
- Internal controls and cash management
- The roles and duties of its board members
Who oversees NSFAS operations
NSFAS is overseen by a board, appointed by the Minister of Higher Education. The board must include financial experts, student representatives, and government officials.
Under the board is a chief executive officer who runs daily operations and manages staff.
Key governance bodies:
- Minister of Higher Education: Appoints the board
- NSFAS Board: Makes high-level decisions
- Finance Committee: Oversees funds, recoveries, and investments
- Executive Officer: Runs the organisation day to day
How funds are managed and reported
NSFAS gets money from several sources:
- Parliament (via the Department of Higher Education)
- Repayments from former students
- Donations or other income
The NSFAS board must submit annual budgets and reports to the Minister. These must be approved by both the Minister of Higher Education and the Minister of Finance.
All NSFAS financial records are audited by the Auditor-General of South Africa every year.
Summary: How NSFAS is structured
Here’s a breakdown of how NSFAS works behind the scenes:
| Function | Governed by Law | Responsible Body |
|---|---|---|
| Bursaries & loans | NSFAS Act | NSFAS Board |
| Rules for qualifying students | NSFAS Act | NSFAS Board |
| Budget planning | PFMA | NSFAS + Minister approval |
| Financial oversight | PFMA | Auditor-General |
| Daily operations | NSFAS Act | NSFAS CEO & staff |
| Student representation | NSFAS Act | On Board (3 members) |
