Free tertiary education under severe threat as NSFAS shortfall hits R15 billion
Higher Education Minister Buti Manamela has warned that South Africa’s commitment to fee-free tertiary education is under severe pressure, with the National Student Financial Aid Scheme (NSFAS) facing a funding shortfall of about R15 billion amid surging student demand.
Speaking to Parliament’s Portfolio Committee on Higher Education, Manamela said the gap had ballooned from roughly R2.5 billion in 2018 to R13.5 billion last year and now stands at around R15 billion. He attributed the crisis not primarily to overspending by NSFAS, but to a structural mismatch: the number of qualifying students entering universities and TVET colleges continues to rise, while government funding remains largely fixed within the Medium-Term Expenditure Framework.
“We have a policy to provide free education on the one hand. On the other hand, we have an allocation that is almost set in stone,” Manamela told MPs. “We have made a commitment to South Africans that we will provide free higher education, and we have to go and find the money. If we don’t have that money from the national fiscus or from wherever, we need to rethink our approach towards a fee-free higher education.”
For the 2026 academic year, NSFAS has approved funding for more than 660,000 students, covering tuition and allowances for those from poor and working-class households. Manamela noted that while enrolments can theoretically be controlled, policy requires that qualifying students receive support, yet the money is not available.
Discussions are underway with the Finance Minister, and government is developing policy proposals to address the growing pressure.