Finance Minister Enoch Godongwana has again sparked debate after publicly criticising NSFAS
Image: GCIS
Finance Minister Enoch Godongwana has again sparked debate after publicly criticising the National Student Financial Aid Scheme (NSFAS), saying he sees little value in the institution.
His comments come as the financial aid scheme continues to face scrutiny over alleged mismanagement and delays in paying students. Godongwana says the government spends R700 million a year running NSFAS, money he believes could pay the fees of thousands more students.
“I don’t see its value. In fact, we’re spending R700 million on the administration of NSFAS. If we took that money and divided it, we could pay the fees of 9,000 students, just with what we spend on administration. All the people with sentimental attachment to NSFAS are attacking me," Godongwana said.
He added that his criticism is not aimed at student funding itself, but at what he sees as inefficiencies within the institution.
"It’s nice, I’ve learned that to be Minister of Finance, you don’t have to be loved by everybody. You just have to state the facts. NSFAS is supposed to be paying universities for student accommodation and other services, but instead, they’ve employed three other service providers to do the work they were created to handle,” Godongwana added.
He also previously criticised the scheme for its high executive pay, saying the CEO reportedly earns R4 million a year.
Last year, the minister suggested that the financial aid scheme should be dissolved, with universities taking over the management of student funding directly. He argued that this would cut costs and get money to students faster.
"Because what does NSFAS do? NSFAS is supposed to be taking money from the Department of Higher Education and transferring it to universities. We don't need that kind of thing.
"We just need to transfer money to universities, since the universities do the task. But we created some strange thing called NSFAS."
NSFAS CEO Waseem Carrim has also acknowledged that corruption remains a serious concern within the organisation.
“Of course, we know there have been many instances of corruption, not only in the administration of bursaries or loans but also across the accommodation sector,” he said in 2025.
At the time he also said that the NSFAS board is committed to working with relevant authorities, including the Auditor-General, Public Protector, law enforcement, and the Special Investigating Unit (SIU).
Established in 1996, the National Student Financial Aid Scheme (NSFAS) serves as South Africa’s main government‑backed programme to help low‑income students afford tertiary education. Funded by the Department of Higher Education and Training, it offers support for university and college tuition, housing and living allowances, and other study‑related expenses to eligible applicants.
While NSFAS has enabled millions of students to access and complete tertiary studies, its administration has been dogged by persistent problems. Long delays in processing funding applications and antiquated systems have left many students waiting months for their funds, making it difficult to cover essentials like accommodation, food, and textbooks.
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