The National Student Financial Aid Scheme (NSFAS) is cracking down to recover R45 billion in unpaid loans. NSFAS insists on debt repayment to keep supporting new students. At a Pretoria briefing, CEO Waseem Carrim urged graduates to pay back, not just to NSFAS but to society.
R45 Billion Debt Crisis
NSFAS holds a R45 billion loan book from pre-2018 funding. Many graduates now work and earn over R30,000 yearly, triggering repayment obligations for their NSFAS debts.
“We can’t ignore this debt,” Carrim said.
Established in 1999, NSFAS has hired debt collectors like Khumalo Masondo Attorneys to pursue defaulters. Non-payers face serious consequences.
R12 Billion Shortfall Threatens Access
A R12 billion funding gap looms for 2025. Universities face R10.6 billion in oversubscription, with TVET colleges adding R1.6 billion. Board chair Karen Stander called it a shortfall, not a bailout. Rising student numbers and living costs drive demand, while government funds dwindle. NSFAS works with the Department of Higher Education and National Treasury to avoid excluding deserving students, emphasising the necessity of NSFAS debt repayment for ongoing support.
Six Priorities for Recovery
NSFAS outlined six priorities to stabilize. Loan management leads to improve debt repayment. A sustainable funding model and better organization design follow. Plans tackle student accommodation, ICT upgrades, and a new operating model.
Stander stressed accountability: “We ensure tomorrow’s students get opportunities.”
Carrim noted NSFAS supports 783,000 students, disbursing R29 billion for universities and R6 billion for TVETs. Debt recovery, including NSFAS debt repayment, fuels this scale. Graduates repaying loans free up funds for others. Timely repayments ensure NSFAS can continue aiding South Africa’s youth.
South Africans know tough times. NSFAS debt repayment secures the scheme’s future, helping families chase dreams through education. Officials urge prompt action to avoid collectors. This builds trust and fairness, ensuring opportunities for all who rely on NSFAS support.
