Higher Education and Training Minister Buti Manamela says the government is considering alternative funding models as NSFAS faces mounting financial pressure.
Higher Education and Training Minister Buti Manamela has sounded the alarm over the financial sustainability of the National Student Financial Aid Scheme (NSFAS), warning that its funding shortfall could balloon to R33 billion by 2029 unless the government fundamentally rethinks how higher education is financed.
Manamela said the government was already in talks with National Treasury over an estimated R15 billion NSFAS shortfall, describing a funding gap that has grown sharply since the introduction of the current student funding policy.
“We are in talks with Treasury about a R15 billion shortfall. Last year it was R13 billion. The year before it was R7 billion. The year before it was R5 billion. The first year when we introduced the policy was R2.5 billion,” Manamela said.
“Estimates are that by 2029, we would have a shortfall of R33 billion at NSFAS.”
