Manamela Ordered to Submit NSFAS Action Plan

Manamela NSFAS action plan deadline set

PRETORIA – Higher Education and Training Minister Buti Manamela have been ordered to submit an integrated NSFAS remedial action plan after the Public Protector found systemic problems affecting the administration, governance and delivery of student financial aid. NSFAS

The Manamela NSFAS action plan must set out how the identified problems will be addressed, with the minister given until 1 November 2026 to provide the required response.

The findings place renewed pressure on the Department of Higher Education and Training (DHET) and the National Student Financial Aid Scheme (NSFAS) to improve the way student funding is administered.

Public Protector finds systemic NSFAS failures

Public Protector Kholeka Gcaleka found that allegations relating to systemic deficiencies at NSFAS were substantiated.

The investigation examined issues involving the administration, governance, funding coordination and oversight of student financial aid.

The findings highlight concerns that have affected students directly, including difficulties accessing funding, unresolved queries and problems involving outstanding student accounts.

For students who rely on NSFAS to pay tuition, accommodation and living expenses, administrative failures can have serious consequences.

More than 40,000 students improperly funded

One of the most significant findings concerns more than 40,000 students across 76 higher education institutions who were reportedly improperly funded.

According to information presented by the Special Investigating Unit (SIU), the improperly funded students were associated with approximately R5.1 billion in funding.

More than R2 billion had reportedly been recovered.

The findings have raised questions about the systems NSFAS uses to verify whether applicants meet the requirements for financial assistance.

Eligible students also left without funding

The investigation also highlighted students who qualified for support but did not receive funding.

A separate concern involves the so-called missing middle – students who do not qualify for traditional NSFAS bursaries but also cannot afford the full cost of higher education.

Government allocated R3 billion between 2024 and 2027 for funding in this area.

However, the programme experienced delays linked to the procurement of a new loan system.

This has left questions about how quickly government can provide financial support to students who fall between existing funding categories.

NSFAS governance remains under scrutiny

The Public Protector’s findings also raised concerns about NSFAS governance.

The organisation has experienced significant leadership instability over recent years, including periods under administration.

The repeated changes in leadership have raised questions about institutional continuity, accountability and the ability of NSFAS to implement long-term reforms.

A stable governance structure will be essential if the organisation is to address its operational problems.

NSFAS struggled to resolve student complaints

Another concern identified during the investigation was NSFAS’s ability to respond to student queries.

The Public Protector found that approximately 80% of queries received through the NSFAS contact centre could not be resolved at that level and had to be escalated to other internal units.

For students facing urgent funding problems, delays in resolving complaints can have significant consequences.

A student waiting for an allowance may struggle to pay for accommodation or food, while unresolved tuition issues can prevent students from progressing or obtaining their qualifications.

Students completed studies but faced account problems

The investigation also considered NSFAS’s Close-Out Project, which was designed to reconcile financial information between NSFAS and higher education institutions.

The project began in 2021 but remained incomplete.

The Public Protector found that unresolved financial reconciliations contributed to situations where students who had completed their studies experienced difficulties obtaining their qualifications because of outstanding institutional accounts.

This demonstrates how administrative problems can continue affecting students even after they have completed their academic requirements.

Manamela must address NSFAS failures

The deadline for the Manamela NSFAS action plan gives the minister a specific timeframe within which government must respond to the findings.

The plan is expected to address the systemic problems identified by the Public Protector and outline measures for improving NSFAS administration.

It will also need to take into account preparations for the 2027 academic year.

The challenge for government will be ensuring that the response goes beyond temporary solutions and addresses the underlying weaknesses within the funding system.

Public Protector calls for stronger controls

The remedial measures are expected to include improvements to several areas of NSFAS operations.

These include:

• Better student communication.
• Faster resolution of appeals and complaints.
• Stronger fraud-prevention measures.
• Improved verification systems.
• Better coordination between NSFAS and higher education institutions.
• Stronger cybersecurity controls.
• Improved financial reconciliation.
• Recovery of funds where improper payments are identified.
• Accountability for officials responsible for maladministration.

The objective is to build a student funding system that is more transparent, reliable and responsive.

Why the NSFAS action plan matters

NSFAS plays a critical role in South Africa’s higher education system.

Thousands of students depend on the scheme to access universities and TVET colleges.

When funding is delayed or incorrectly allocated, the consequences can extend beyond finances.

Students may lose accommodation, struggle to afford food, miss classes or face delays in completing their qualifications.

The effectiveness of the Manamela NSFAS action plan will therefore be measured not only by administrative reforms but by whether students experience tangible improvements.

Missing-middle funding remains a challenge

The missing-middle funding gap is likely to remain one of the most difficult issues for government.

Students who fall outside traditional NSFAS eligibility thresholds can still face substantial financial barriers.

The government has attempted to address this through a loan-based funding model, but delays in implementation have created uncertainty.

A functioning system will need to balance affordability for students with appropriate financial controls to protect public funds.

Government faces pressure to restore confidence

The Public Protector’s findings add to existing pressure on government to improve the administration of student funding.

NSFAS has faced criticism from students, universities, political parties and civil-society organisations over its handling of funding decisions and payments.

Restoring confidence will require consistent communication, reliable systems and clear accountability.

It will also require government to demonstrate that lessons from previous failures have been implemented.

What happens next?

The immediate deadline is 1 November 2026, when Manamela is expected to submit the remedial action plan.

The plan will provide an important indication of how government intends to respond to the Public Protector’s findings.

The next major test will be whether those commitments translate into improvements for students during the 2027 academic year.

If the reforms are implemented effectively, they could help address some of NSFAS’s longstanding administrative and governance problems.

The bottom line

The Manamela NSFAS action plan puts the Higher Education Minister under pressure to address serious weaknesses identified by the Public Protector.

The investigation found systemic problems involving student funding, governance, administration, complaints, financial reconciliation and oversight.

More than 40,000 students were reportedly improperly funded, while other eligible students experienced difficulties accessing financial assistance.

Manamela now has until 1 November 2026 to submit the required remedial action plan.

For millions of South African students and their families, the real test will be whether the plan produces a more reliable, transparent and responsive NSFAS.