Nsfas chaos: R1.7 billion unallocated to desperate students

The National Student Financial Aid Scheme (Nsfas) has robbed qualifying students of an opportunity to study as R1.7 billion allocated to higher education institutions was not collected annually and realloted.

The funds were recently recovered by the Special Investigating Unit (SIU), said spokesperson Kaizer Kganyago.

“The funds paid by Wits and University of the Free State (UFS) are unallocated from 2016 to 2021.

“The payments made by Wits University and UFS brings the total amount received from institutions of higher learning to about R1.7 billion since the inception of the Nsfas investigation in September 2022,” he said.

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These funds were unused due to students receiving multiple sources of funding and changes in the total cost of study for an academic year.

Students receive silence from Nsfas

Kganyago said the unallocated funds are supposed to be collected by Nsfas at the end of each year.

Former student, 20-year-old Aleah Fontein, was furious to hear that Nsfas had unspent money as she had wanted to study criminology, but could not due to lack of funds.

She said she had to pay out of her own pocket for registration at the University of South Africa, but could not afford the fees as she did not have a job and had received no feedback from the Nsfas.

“I am very angry to hear that there are unspent funds and I didn’t even get feedback. The process is broken. I have applied twice, but I haven’t heard anything,” said Fontein.

“I sent in the required documents, I tried applying online, downloaded the app and phoned the landline number numerous times. I even messaged Nsfas on Instagram, but no reply,” she explained.

Sudden cut-offs

Another student Katlego Lukhele said she had applied to the Nsfas twice.

“In 2022, I was accepted but had no school to attend because the schools I was accepted into were private institutions. “In 2023, I applied again and had a university too and got the first allowance in March, which was for meals and books (about R8 000), the whole lump sum,” she said.

Lukhele said she also got a R1 600 monthly allowance until July when it was cut off.

“At first I thought the payment was late. After recess I heard other students complaining that the Nsfas had cut them off too,” she said.

“They told me about my parents’ threshold and all of that, but it didn’t make sense because both parents are unemployed,” she said.

SIU commended

Education activist Hendrick Makaneta said it was disappointing that universities had unspent funds while students were unable to register due to historic debt.

“For many years we have cautioned about universities sitting with reserves, but not being willing to spend such reserves.”

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Makaneta commended the SIU for a thorough investigation, which led to the recovery of state funds.

“These funds will certainly go a long way to address the challenges of funding, which have led to financial exclusions of students. We call on the government to put in place monitoring and evaluation systems that can easily detect the use of state funds by government entities.

“The investigations by the SIU should be extended to other universities and technical vocational education and training (TVET) colleges. At a time when the government is facing austerity measures, unused funds are needed the most and this includes university reserves,” he said.

R9 million to one TVET

Makaneta said the return of funds from universities to Nsfas was evidence that auditing systems were failing taxpayers.

Kganyago said Nsfas should hire a service provider to assist with the reconciliation process.

“Nsfas pays Boland TVET College close to R9 million. The SIU also assisted in the refund of R8.9 million. This represented the underpayments that Nsfas has made to the institution for the 2017-2022 academic years.

“With the intervention of the SIU, the amount owed by Nsfas to the institution was quantified and paid, ensuring what the institution received what was due to it,” he said.

Kganyago said the SIU was, in terms of Proclamation R88 of 2022, authorised to investigate allegations of corruption and maladministration in the affairs of the Nsfas.

It was also allowed to recover any financial losses to the state through corruption and negligence.

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