Just over one in five students funded by the National Student Financial Aid Scheme are failing to meet academic progression requirements, exposing fresh pressure on South Africa’s struggling student funding system.

Figures presented to Parliament’s Portfolio Committee on Higher Education show that 21.6% of funded students at universities and TVET colleges are not meeting the required academic standards.

Most Students are Still Progressing

The data shows that 466,117 university students and 145,986 TVET college students met the academic progression criteria.

But 102,082 university students and 66,647 TVET students did not meet those standards. A further 1,235 university results were still outstanding.

In total, NSFAS funded 569,434 university students and 212,633 TVET college students.

That means while the majority are progressing, a major chunk of the student population is falling behind, raising concerns about whether public money is being used effectively.

Government Flags Funding Failures

The Ministry of Higher Education and Training said audit findings uncovered tens of thousands of cases where students with prior qualifications, or students who failed to meet academic progression requirements, continued receiving funding.

Higher Education and Training Minister Buti Manamela has since moved to tighten oversight.

The ministry also confirmed that NSFAS received a disclaimer of opinion for the 2024/25 financial year, the worst possible audit outcome. It said this points to a deepening breakdown in governance, financial controls and accountability.

Audit Findings Raise Red Flags

Among the most serious issues flagged were 822 students recorded as deceased who were still receiving funding.

The audit also found that more than 14,000 ineligible students were funded despite exceeding income thresholds. Another 321 students were found to be receiving both NSFAS funding and Social Relief of Distress grants.

The ministry warned that these failures diverted funding away from poor and working-class students who genuinely qualify for support.

Manamela has instructed NSFAS to activate its forensic unit and work with the Special Investigating Unit to investigate fraud and recover funds.

Appeals and Housing Add More Pressure

The minister also flagged 7,805 outstanding student appeals, with 98.8% of those delays blamed on system failures.

Student accommodation conditions were also criticised, with the audit highlighting unsafe housing, harassment by landlords and accommodation near taverns.

NSFAS has now been ordered to submit a full remedial plan by 30 April 2026, with quarterly accountability sessions set to follow.