South African Universities Urge NSFAS Overhaul to Prevent Violent Protests

Escalating Campus Unrest Signals Urgent Need for Change

South African universities are once again at the center of student protests in 2026, with demonstrations disrupting academic life at institutions like Durban University of Technology (DUT), Cape Peninsula University of Technology (CPUT), and University of Cape Town (UCT). These outbursts stem from chronic delays in National Student Financial Aid Scheme (NSFAS) payments for allowances covering meals, transport, and accommodation, leaving thousands of students hungry and homeless. At DUT, over 5,000 affected learners protested violently, prompting a shift to online learning and arrests amid vandalism. Similar scenes unfolded at CPUT, where housing shortages forced students into tents, leading to suspensions and safety fears, while UCT faced marches over evictions from unsafe digs and historical debts blocking registration.

The National Student Financial Aid Scheme (NSFAS), established to provide financial assistance to eligible students from poor and working-class families pursuing higher education at public universities and Technical and Vocational Education and Training (TVET) colleges, funds tuition, accommodation, living expenses, and learning materials. However, systemic inefficiencies have turned what should be a lifeline into a flashpoint for frustration.

Roots of the Dysfunction: A Decade of NSFAS Challenges

Since the 2015-2017 Fees Must Fall movement secured fee-free higher education for households earning under R350,000 annually, NSFAS has ballooned, approving funding for over 1 million students in 2026 from 894,000 applications. Yet, issues persist: 1 in 5 funded students fail academic progression criteria, prompting over 100,000 appeals, while historical debts totaling billions—universities owe NSFAS R10.46 billion from 2017-2023—block new registrations. Fraud, including payments to ghost and deceased students, led to Special Investigating Unit (SIU) recoveries of R1.7 billion in misallocated funds from 2016-2021, part of over R2 billion reclaimed.

Accommodation crises exacerbate tensions, with a national shortage—one bed per 33 students—and NSFAS caps failing urban realities, forcing top-ups or unsafe housing prone to gender-based violence. The 'missing middle'—households between R350,000 and R600,000—remains largely excluded, despite low-uptake loan schemes.

University Leaders Issue Stark Warnings

Francis Petersen, Vice-Chancellor of the University of Pretoria and Chairperson of Universities South Africa (USAf), the representative body for the country's 26 public universities, has been vocal. 'The current student finance model is unsustainable,' he stated, warning that protests—though better managed—will continue as students' primary expression of frustration amid unpaid allowances causing hunger and evictions. Petersen advocates a 'totally new system' or moderated contributions to balance growing numbers with finite resources.Times Higher Education reports

USAf rejects sensational claims of 'collapsing' universities, highlighting resilience through diversified revenues, rising enrolments (despite strains), and steady research output. They urge constructive dialogue over destruction, noting protests divert resources from core missions.

NSFAS by the Numbers: Scale of the Strain

In 2026, NSFAS's R54.3 billion budget supports 744,203 students, primarily at 26 universities and 50 TVET colleges—around 580,000 at universities. From 893,847 first-time applications, 609,403 were approved; 416,688 continuing students qualified, but 129,264 were discontinued for poor performance, with 218,043 pending documents. Early disbursements exceeded R6.3 billion, yet shortfalls like R10.6 billion loomed earlier, fueling fears of defunding 100,000 qualifiers.

These figures underscore demand outstripping supply, with women comprising 66% of applicants.

Photo by Hennie Stander on Unsplash

Government Steps In: Administration and Reforms

Minister of Higher Education and Training Buti Manamela placed NSFAS under administration after board dissolution and CEO termination, appointing a new board in March 2025 for turnaround. Key reform: direct payments from 2026 to students and accredited providers, bypassing corrupt intermediaries. Enhanced Memoranda of Understanding enforce data verification and reconciliations.IOL details the SIU probe

• Upgraded portal for accommodation tracking and alignment with academic calendars.
• SIU ongoing investigations and consequence management.
• New universities in Ekurhuleni and Hammanskraal; Central Application Service proposed.

Funding continuity assured, but critics like the DA call for scrapping NSFAS for a decentralized model.

Case Studies: Protests in Action

DUT: March 2026 saw thousands blockade roads over unpaid allowances; SRC blamed verification delays. Classes suspended, security injured—costly shift to virtual teaching.

CPUT: Housing protests led to tent encampments and suspensions; Dental Council accreditation battles delayed graduations, compounding funding woes.

UCT: February marches against evictions from NSFAS digs; historical debt barred 720,000 nationwide.

Human and Institutional Toll

Students endure hunger (no meal allowances for months), evictions, mental health crises, and dropouts; youth unemployment at 60% worsens. Universities face R800 million+ in past damages, security hikes, and unpaid fees straining operations. Research and infrastructure suffer as focus shifts to crisis management.

Voices from Stakeholders

South African Union of Students (SAUS) decries incompetence, demanding debt wipes. Opposition DA seeks NSFAS abolition; unions warn administration repeats failures. USAf promotes resilience via partnerships, tech, and diversified income.

Photo by Hennie Stander on Unsplash

Towards Sustainable Solutions

Beyond direct payments, experts propose blockchain for transparency, means-tested loans for missing middle, and institutional subsidies. USAf eyes tech integration and global ties; government plans application centralization.USAf statement on stability

• Moderate allowances to fit budget.
• Academic progression incentives.
• Public-private housing partnerships.

Outlook: A Pivotal Moment for Higher Education

With reforms kicking in, 2026 could mark a turning point if implementation succeeds. Universities remain committed to access, urging collaboration to prevent recurrence. Sustainable funding is key to unlocking South Africa's talent, averting lost generations amid 32% youth joblessness.