The Auditor-General's Damning Revelations

The National Student Financial Aid Scheme (NSFAS), a cornerstone of access to higher education in South Africa, has been thrust into the spotlight following a scathing Auditor-General report for the 2024/25 financial year. The audit, which resulted in the worst possible outcome—a disclaimer of opinion—uncovered that NSFAS continued disbursing bursaries to 822 students officially recorded as deceased in the Department of Home Affairs database. This shocking irregularity highlights profound systemic failures in verification processes, diverting precious funds away from living, deserving students pursuing degrees at universities and technical vocational education and training (TVET) colleges across the country.

Compounding the issue, the report identified over 14,000 students from households exceeding the income threshold who still received funding, alongside 321 individuals simultaneously claiming NSFAS bursaries and social grants. Many more cases involved students who had failed their modules or already held qualifications, yet payments persisted unchecked. These lapses not only represent financial mismanagement but also erode the trust in a system designed to uplift poor and working-class youth through post-school education.

The findings paint a picture of weak data integration between NSFAS and key government entities like Home Affairs and the South African Revenue Service (SARS). Without routine cross-verification against death registries or income declarations, ineligible recipients slipped through, while frontline students at institutions like Durban University of Technology (DUT) grappled with payment delays that sparked protests.

Understanding NSFAS: Backbone of South African Higher Education Access

Established under the National Student Financial Aid Scheme Act of 1999, NSFAS provides comprehensive bursaries covering tuition, accommodation, living expenses, and learning materials for eligible students from low-income families. Full-time undergraduate and postgraduate students at South Africa's 26 public universities and 50 TVET colleges qualify if their household income falls below R350,000 annually. In recent years, NSFAS has expanded dramatically, funding nearly 800,000 students in 2024/25 alone, with a budget exceeding R40 billion allocated by the Department of Higher Education and Training (DHET).

This scheme has been pivotal in transforming higher education demographics, increasing enrollment from underrepresented communities and contributing to a gross enrollment ratio nearing 20% in public higher education institutions. However, rapid growth has strained administrative capacity, leading to backlogs in appeals, accommodation mismatches, and now, these verification horrors. For universities like DUT, which serves over 30,000 students predominantly from KwaZulu-Natal's townships, NSFAS funding is lifelines—delays mean evictions, hunger, and disrupted studies.

Dissecting the Irregularities: Scale and Mechanisms

The Auditor-General's data analytics flagged these issues through cross-referencing NSFAS beneficiary lists with Home Affairs' deaths register and SARS income data. The 822 deceased cases spanned various institutions, with payments continuing post-mortem due to absent automated flags or manual reconciliations. Ineligible funding often stemmed from outdated parental income declarations or undeclared social grants, exploiting gaps in annual reverification protocols.

Step-by-step, the flawed process unfolds: Students apply via myNSFAS portal; eligibility checked against ID, income proofs; approvals issued. But without real-time Home Affairs linkage, a student's death doesn't trigger deactivation. Similarly, income hikes go unreported. The audit disclaimer signals unreliable financial statements, with irregular expenditure potentially running into hundreds of millions—exact figures pending forensic probes. This isn't mere oversight; it's a governance crisis amplified by NSFAS's post-2023 leadership turmoil, including CEO suspensions over tender scandals.

DUT Protests: Ground Zero for Student Anger

At Durban University of Technology (DUT), a multi-campus institution specializing in applied sciences and technology, NSFAS woes boiled over into chaos. In mid-March 2026, delays in allowance disbursements—book, personal care, and accommodation components—prompted mass protests. Students were evacuated from test venues and libraries at Steve Biko and Ritson campuses, halting exams and lectures. DUT's Student Representative Council (SRC) decried the funding drought, linking it to national mismanagement.

Over 5,800 DUT students eventually received payments post-protests, but the episode underscored vulnerabilities. DUT, with its focus on engineering, health sciences, and built environment programs, relies on NSFAS for 70% of undergraduates. Protests echoed at other sites like CPUT and UP, but DUT's visibility amplified calls for reform, tying local grievances to the deceased payments scandal.

SAUS Steps Up: Demands for Radical Overhaul

The South African Union of Students (SAUS), representing SRCs nationwide, issued a fiery statement post-audit, demanding "urgent, decisive, and transparent corrective measures." They lambasted the scandal as a "serious institutional failure" eroding public trust, especially amid thousands of exclusions and defunding. SAUS praised acting CEO Waseem Carrim's stabilization efforts but insisted on:

• Robust verification via Home Affairs and SARS integration.
• Special Investigating Unit (SIU) probe into fund trails.
• Accountability: dismissals and prosecutions for negligence or fraud.
• Fund recovery without penalizing innocent students.
• Enhanced communication and governance reforms.

SAUS warned of further action if ignored, positioning itself as guardian of higher education equity.

Government Mobilizes: Manamela's Swift Directives

Higher Education and Training Deputy Minister Buti Manamela convened an emergency accountability session with NSFAS board and Auditor-General. He issued binding directives: immediate investigations, fund recovery, fraud referrals to police; full accommodation provider audits with suspensions for non-compliance; new policy framework by April 2026 end; comprehensive remedial plan by April 30. Quarterly ministerial oversight and 70-day appeal resolutions were mandated. Manamela reassured 800,000 qualifiers their funding is secure, while activating NSFAS's forensic unit alongside SIU. Official government statement details these steps.

Opposition and Civil Society Outrage

The Democratic Alliance (DA) slammed NSFAS's portfolio committee briefing as misleading, demanding dedicated hearings with timelines. ANCYL echoed calls for accountability. Outa flagged accommodation fraud risks, while student media trended #NSFASDeadStudents on X, amplifying real-time fury from DUT and beyond. Universities like DUT urged calm but highlighted dignity violations—unsafe housing near taverns, transport woes.

Historical NSFAS Turbulence: A Pattern Emerges

This isn't isolated. NSFAS faced 2023 CEO ousting over R800m tender irregularities; SIU recoveries from unis like Wits (R450m); 40,000 incorrect payments 2018-2021. Post-NEP 2020 expansion to all income-eligible undergrads ballooned caseloads without proportional admin boosts. TVET-university disparities persist, with TVETs hit harder by verification lags.

Ripple Effects on SA Higher Education Landscape

Universities face cashflow crunches from delayed block payments, straining services. Students endure hunger, dropouts—DUT saw eviction threats. Enrollment booms (980k+ in higher ed) mask quality dips; scandal fuels narratives questioning degree value amid 30% youth unemployment. For colleges like DUT, reputation suffers, deterring applicants.

Charting Reforms: Technology and Accountability Keys

Solutions demand digital overhaul: API integrations with Home Affairs/SARS for real-time checks; AI-flagged anomalies; blockchain-tracked payments. Governance via independent board oversight, whistleblower protections. Pilots at DUT-like institutions could test streamlined appeals. Long-term: hybrid funding blending NSFAS with private bursaries, performance-based allocations.

Outlook: Rebuilding Trust in Student Funding

With SIU probes underway and April deadlines looming, NSFAS teeters on redemption. Success hinges on execution—transparent recoveries, student safeguards. For South Africa's higher ed ambitions—Viksit Bharat-inspired growth—robust NSFAS is non-negotiable. Students at DUT and nationwide deserve not pity, but systems that deliver equity and opportunity. As SAUS asserts, "the time for accountability is now."

Photo by Christian Lue on Unsplash