NSFAS bombshell: Students received billions in improper funding
· The South African
More than 40 000 students received R5.1 billion in National Student Financial Aid Scheme (NSFAS) funding despite not qualifying for the financial support, according to findings by the Special Investigating Unit (SIU).
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The money went to students across 76 higher education institutions, while authorities have since recovered more than R2 billion.
Public Protector Kholeka Gcaleka cited the findings during her investigation into systemic problems at the National Student Financial Aid Scheme (NSFAS).
The latest findings put the scheme back in the spotlight as thousands of South African students depend on NSFAS to cover tuition, accommodation and living costs.
40000 students received NSFAS funding improperly
The SIU uncovered the payments during an investigation launched under Proclamation R88 of 2022.
Investigators identified weaknesses in NSFAS controls, including failures to reconcile money paid to institutions with the students who qualified for funding.
Gcaleka considered the SIU’s findings as part of a broader investigation involving NSFAS, the Department of Higher Education and Training (DHET) and higher education institutions.
Her investigation also highlighted problems with funding decisions, appeals, allowance payments and the handling of student queries.
NSFAS reported that its contact centre could not resolve 80% of queries without referring them elsewhere within the organisation.
These administrative problems have had serious consequences for students, with some struggling to secure accommodation, food and other basic needs.
BREAKING NEWS | More than 40,000 students across 76 institutions were improperly funded by NSFAS to the tune of R5.1 billion, according to findings by the Public Protector. pic.twitter.com/6fC1D28O2m
— SABC News (@SABCNews) August 18, 2026
NSFAS problems leave students in limbo
The Public Protector also investigated complaints from students who completed their studies but could not receive their qualifications because institutions still reflected outstanding tuition fees.
In 12 complaints, institutions were collectively owed R601 000.
The accounts were eventually settled following the Public Protector’s intervention.
Gcaleka has now proposed measures aimed at improving fraud controls, cybersecurity and communication with students.
She also wants NSFAS to tackle appeal backlogs and strengthen the way it verifies information against government databases.
What happens next?
NSFAS could also have to identify current or former officials who contributed to governance failures, maladministration or weaknesses in its controls.
Where the evidence warrants further action, those responsible could face disciplinary proceedings, civil recovery or criminal referrals.
NSFAS, DHET and other affected parties have 60 days to make representations on the Public Protector’s Section 7(9) notice.
Gcaleka will consider those responses before finalising her findings and any remedial action.