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The estimated R33 billion shortfall at the National Student Financial Aid Scheme (NSFAS) by 2029 is yet another clear warning that the current national funding model is financially unsustainable.

The Democratic Alliance (DA) has consistently called for the decentralisation of NSFAS, and Minister Buti Manamela must stop unnecessarily dragging out the process of shutting down the national layer of NSFAS.

The Minister has already confirmed that NSFAS is facing a roughly R15 billion deficit and that fundamental changes to the funding system are required. This growing financial crisis makes decentralisation more urgent than ever. The only way to address this financial crisis is to decentralise NSFAS.

Instead of continuing to spend scarce public money maintaining an inefficient national layer, the Department should urgently move towards a decentralised funding model. Every rand spent unnecessarily on administration is a rand that could instead be supporting students. At a time when students are struggling to afford food and other basic necessities, continuing to waste money on a broken structure is unacceptable.

NSFAS currently plays a critical role in South Africa’s higher education system, with approximately R56 billion of the Department’s budget directed towards an institution liable for funding around 800 000 students every year.

The DA proposes an urgent review of the NSFAS Act and the decentralisation of student funding administration so that universities and TVET colleges can once again take greater responsibility for delivering funding directly to students.

Minister Manamela must stop delaying the inevitable. The rising shortfall proves the current model cannot continue. South Africa needs a decentralised funding system that reduces unnecessary administration, puts institutions in charge of delivering funding, and ensures that scarce public resources reach the students who need them most.

Issued by DA Spokesperson on Higher Education Dr Delmaine Christians