An intern working for the National Student Financial Aid Scheme (NSFAS) has allegedly been offering cash-strapped students loans at interest rates of up to 45%.
A 22-year-old student at the Cape Peninsula University of Technology (CPUT), facing a mountain of debt, this week told how she had twice tried to commit suicide as her mental health deteriorated under the strain of overwhelming financial pressure.
The student, who relies on monthly NSFAS payments — which are often delayed — to buy food, shared WhatsApp messages in which NSFAS intern Abongile Nghona allegedly solicited business from desperate students.
Contacted for comment, Nghona denied charging interest, but the WhatsApp messages seen by the Sunday Times suggest otherwise.
Messages dated between April 10 and 12 2026 show Nghona advertising: “Evening guys, loan is available, 45% interest. You can DM”, followed by repeated posts indicating availability.
The case has cast a spotlight on claims that financially vulnerable students are being exploited while waiting for aid payments, which can be delayed by up to three months.
Borrowers are subjected to unfair repayment terms, including intimidation or coercion. Some lenders may be withholding student belongings, laptops, IDs or NSFAS funds as collateral. As a result, my daughter reached a breaking point because she could not deal with the threats and harassment
— Student’s father
Last week, the CPUT student’s parents returned to their home in Kwa Langa outside Cape Town to find she had stabbed herself in the stomach with a knife. They later learnt she had been struggling with huge debt after borrowing from loan sharks.
In a letter to the department of higher education and NSFAS, which the Sunday Times has seen, the student’s father alleges illegal money-lending activities in the institution. He claims students are being charged excessive interest rates of 45% to 50%, often without parental knowledge.
“Borrowers are subjected to unfair repayment terms, including intimidation or coercion. Some lenders may be withholding student belongings, laptops, IDs or NSFAS funds as collateral. As a result, my daughter reached a breaking point because she could not deal with the threats and harassment,” he wrote.
NSFAS this week confirmed it had launched an investigation after learning of the allegations.
NSFAS spokesperson Ishmael Mnisi said Nghona was part of its graduate internship programme and was deployed at False Bay College.
“NSFAS maintains a zero-tolerance policy towards fraud, corruption and exploitation, and is treating these allegations with the utmost seriousness,” Mnisi said.
The CPUT student’s father — who asked not to be named to protect his daughter’s identity — said the extent of the debt only came to light when Nghona arrived at their home demanding payment.
“Our daughter had been hospitalised after taking pills. At the time, I thought it was an isolated incident. Later, I discovered her phone had been taken. I rushed to raise the money and paid the lender. She owed R850 plus 45% interest.
“We then learnt there were others — people calling and sending threatening messages. One person who took her laptop claimed that she owed R5,000. I am trying to raise the amount so she can get her laptop back.”
The family instructed Nghona not to lend more money to his daughter. However, she later borrowed again.
In WhatsApp exchanges seen by the Sunday Times, Nghona acknowledges being told not to lend the student money again. The student, however, insists her NSFAS issues have been resolved and asks that her parents not be involved. Nghona responds that she works with NSFAS and requests the student’s ID to verify her details.
A 2024 study of NSFAS challenges found that delayed payments often leave students without accommodation or basic resources at the start of the academic year, contributing to severe stress, anxiety and academic disruption. Many students from disadvantaged backgrounds face compounded pressures, increasing the risk of burnout and dropout.
Exchanges dating back to 2024 show repeated borrowing, with amounts reaching up to R800. The student alleges that when she struggled to repay, the tone of the messages shifted to threats, including warnings that valuables in her room would be taken
Nghona told the Sunday Times she was offering loans on behalf of her mother.
“I only lent money to students I know. Many people on campus lend money to students, and I have never charged interest. I was just helping out.”
She did not respond when asked about the WhatsApp messages that advertised loans with interest.
The CPUT student said her troubles began in 2024 when she moved into a Cape Suites residence as a first-year student. “Like many NSFAS beneficiaries, I was still waiting for my allowance,” she said.
Shortly after joining a residence WhatsApp group, she came across posts from Nghona advertising loans. Nghona was inviting students to message her directly, offering loans at interest rates starting at 40%.
The student said she initially borrowed R100 and was required to repay R140. To access the loan, she submitted personal documents, including proof of residence, proof of registration, her student card and ID.
“I got deeper and deeper into debt and became dependent on the loans,” she said.
With a monthly NSFAS allowance of R1,740, she said she was often left with only about R500 after repaying loans and interest.
Exchanges dating back to 2024 show repeated borrowing, with amounts reaching up to R800. The student alleges that when she struggled to repay, the tone of the messages shifted to threats, including warnings that valuables in her room would be taken.
The unrelenting financial pressure has taken a severe toll on her mental health, she says.
CPUT spokesperson Lauren Kansley said: “We have no record of any complaint of this nature being reported. However, on receipt of your query, we have pre-emptively launched an investigation into the allegation.”
Kansley urged affected students to come forward.
“If any evidence is presented, we will investigate and involve the necessary stakeholders. We encourage those affected to lay formal complaints so that these allegations can be properly addressed.”
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