Administrator to take over governance, management and administration of NSFAS for two years

An administrator will take over the governance, management and administration of the National Student Financial Aid Scheme (NSFAS) for two years.

The administrator will manage its day to day affairs and ensure it addresses its operational challenges, higher education minister Blade Nzimande said in a government gazette on Friday.

“This will include strengthening structures, systems and policies that will ensure good governance and effective management of the operational mandate of NSFAS and oversee forensic and other investigations necessary for the effective operation and management of the entity.”

On Thursday Nzimande dissolved the scheme's board with immediate effect.

The NSFAS has been embroiled in a series of controversies in recent months.

Nzimande has raised concerns about the failure to effectively confirm funding for students and disburse funding timeously to students in technical vocational education and training (TVET) colleges and universities.

He said the board was engaged on several occasions on solutions, including a turnaround strategy which has not been achieved within agreed timelines. 

Despite engagements with the entity, it hadn't dealt with challenges affecting its business processes, IT systems, capacity and policies and controls.

One of the administrator's tasks will be to ensure finalisation of funding guidelines of loans for the “missing middle”.

Others include:

• resolving data integration challenges;
• finalising funding decisions;
• ensuring reconciliation of funding data between universities and TVET colleges and NSFAS;
• ensuring agreements are in place and students are accurately funded and recorded;
• making sure NSFAS-qualifying students receive funding;
• oversee the opening of the 2025 online applications process (bursary and loan);
• ensure partnerships for managing the applications process are in place and can be effectively monitored;
• develop and manage a communications plan for the application period;
• develop — in consultation with the department, universities and TVET colleges — an effective and realistic plan for the 2025 funding cycle;
• ensure the entity pays adequate attention to TVET colleges and universities in its business processes;
• put in place the necessary management and governance controls to ensure risks of the 2025 student funding cycle are appropriately managed with the support of the department and institutions as necessary; and
• ensure adequate plans are in place to make funding decisions at the earliest possible time and as close to registration as possible.

The administrator will be expected to report to Nzimande or delegated officials and must submit a written report every three months on progress. 

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