The Special Investigating Unit (SIU) has returned R1.7 billion to the National Student Financial Aid Scheme (NSFAS) after recovering the money from universities, TVET colleges and former students who did not qualify for funding.

The SIU said the recovery comes as the 2026 academic year gets under way, with students registering at higher education institutions across South Africa. The R1.7 billion forms part of more than R2 billion recovered so far from institutions and unqualified former beneficiaries.

Where the Money Came From

According to the SIU, the funds were unallocated between 2016 and 2021. These were funds meant for qualifying students who later changed institutions or deregistered. Institutions may retain these funds for one year, but the SIU said in these cases the money was held for longer.

The SIU linked the build-up of unallocated funds to weak control systems and a lack of reconciliation processes at NSFAS during that period, which it said led to failures in recovering funds from institutions.

Who has Paid and What Happens Next

The SIU said it recovered R126,478,184.64 from 1,055 parents and unqualified NSFAS beneficiaries who signed acknowledgements of debt and agreed to repay the money over time. It also called on other unqualified beneficiaries to come forward and make repayment arrangements.

The SIU said several institutions have already paid money back, including the University of the Witwatersrand, the University of Pretoria, the University of the Free State and the University of Fort Hare. It said the total recovered in this tranche came to just over R2 billion.

New Controls and Ongoing Investigations

The SIU said NSFAS has indicated it will implement the unit’s recommendations, including a data-driven reporting process with monthly occupancy and payment reports. It also said NSFAS is considering an in-house payment function to improve financial management and remove “the middleman”.

The SIU’s NSFAS investigation falls under Proclamation R88 of 2022. The unit said it can pursue civil action in the High Court or the Special Tribunal and will refer evidence of criminal conduct to the National Prosecuting Authority.