Manamela commits to steady NSFAS and create new funding model.

By Lehlohonolo Lehana.

The Minister of Higher Education and Training, Buti Manamela, unveiled a plan to overhaul the National Student Financial Aid Scheme (NSFAS) funding model, aiming to address governance issues.

Manamela held a press conference on the state of post-school education and the department’s vision for the sector in Tshwane.

NSFAS is the government’s agency for providing financial support to eligible students studying at tertiary education institutions. It has been plagued by controversy for years and faces persistent complaints from students over its failures to pay their accommodation and living allowances on time.

It was placed under administration for the second time last year after corruption allegations against former CEO Andile Nongogo and former chairperson Ernest Khosa, and still does not have a permanent CEO five months after Freeman Nomvalo’s term as administrator ended on March 5.

He says stabilising the NSFAS is a top priority in the department’s education reform plan.

“ To this effect, I’ve asked the CEO and the chairperson of the National Student Financial Aid scheme to convene an urgent briefing and brief the nation, and in particular students, on the state of NSFAS and some of the challenges that they’ve been confronted with. To support their work, we have already started engagement with Treasury in filling some of the gaps that exist in terms of student funding.”

Outlining his plan, Manamela says a Post-School Education and Training task team will be set up to lead the overhaul of the post-school education system.

The changes come after widespread concerns about governance, delivery failures, and funding gaps at NSFAS.

The minister also says all NSFAS issues are being addressed to ensure access, boost accountability, and restore public trust.

“ Early in September, we will hold an extensive briefing that details our plans, as [they] relate to the National Student Financial Aid Scheme, but also in terms of the bigger question as to how we are going to prepare ourselves given some of the challenges that we have at NSFAS. 

“There’s no denying that there’s been fundamental challenges at NSFAS. But what we shouldn’t also deny is the fact that 800,000 students, as we speak, have received their allowances.”

“We will also strengthen Setas, finalise their realignment, and ensure every Seta delivers measurable value,” he said.

The 21 Setas are intended to bridge the gap between school and workplace with skills training, but many are mired in allegations of corruption and mismanagement. Only nine Setas received a clean audit from the auditor-general in 2023/24, the most recent year for which data is available.

DA spokesperson on higher education Matlhodi Maseko welcomed Manamela’s promise to fix the NSFAS urging him to ensure the organisation implemented a reliable ICT system.

Dependable ICT infrastructure was crucial for NSFAS to pay eligible students timeously and track disbursements to higher education institutions and accommodation providers, she said.

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