R5 billion Nsfas funds went to students who didn’t qualify
· Citizen
In 2023, more than R5 billion in National Student Financial Aid Scheme (Nsfas) money was possibly allocated to students who did not qualify for funding, says the Special Investigating Unit (SIU).
The SIU told parliament’s standing committee on public accounts (Scopa) that these were for students whose household income is above R350 000 and “therefore would not qualify for Nsfas funding based on the funding rules”.
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More than R5 billion possibly allocated to students above R350 000 income
Many of them, the SIU said, “did not submit their parents’ details upon application and therefore the means test was not properly conducted”.
The auditor-general (AG) said its annual regulatory Nsfas audit for the 2024-25 financial year found that 14 000 students might not have met the prescribed financial eligibility criteria that year.
It added that its number is separate from those under investigation by the SIU.
Figures tabled by the AG with the portfolio committee on higher education in March, said 21.6% of students at university and technical and vocational education and training TVET colleges did not meet the required academic standards.
However it said tens of thousands of students with prior qualifications, or who failed to meet academic progression requirements, continued to be funded.
Among its major findings, the AG said 822 students were recorded as deceased and continued to receive funds. More than 14 000 ineligible students were funded, despite exceeding the income thresholds, it said.
822 deceased students
Rudie Heyneke, investigations manager at the Organisation Undoing Tax Abuse, said students who did not qualify for Nsfas funds due to their combined household income exceeding the R350 000 annual threshold will be required to repay the funds they received improperly.
“The SIU is currently handling recoveries and Nsfas has also appointed its own debt collectors to recoup funds, not only recent amounts but also money owed from before 2018, when the system still operated as a loan scheme,” he said.
Heyneke said it was difficult to determine the exact extent of Nsfas’ financial troubles, as various figures are being cited.
“While it is said that Nsfas is R50 billion in the red, I do not believe there is a definitive figure representing the true depth of their financial crisis,” he said.
Heyneke suggested that Nsfas should revise its selection criteria while continuing to assist deserving students.
“They should examine fields of study to ensure they are funding the right students and focusing on the scarce skills the country needs.”