NSFAS News
Graduates Trapped in NSFAS Unsettled Debts

Graduates Trapped in NSFAS Unsettled Debts. The National Student Financial Aid Scheme (NSFAS) was designed to provide financial support to underprivileged students pursuing higher education in South Africa. However, an increasing number of graduates are finding themselves trapped in a vicious cycle of debt, unable to access their academic records or qualifications due to unpaid tuition fees. This growing issue is leaving many students in professional limbo, unable to secure employment or further their studies.
Unpaid Fees Leave Graduates Stuck
One such graduate, Bongani Khumalo, who completed his studies at Tshwane University of Technology (TUT), shared his distressing experience. Despite being provisionally accepted for NSFAS funding in 2016, he faced severe financial hurdles due to payment delays. Initially, NSFAS covered his registration fees but failed to pay for his accommodation. Bongani had to secure his own housing for six months before he was finally placed in a student residence.
However, the real financial strain emerged when he discovered that NSFAS had not covered his tuition fees. To continue his studies, he was forced to sign an Acknowledgment of Debt (AOD) agreement, which allowed him to remain enrolled but left him with a substantial financial burden. By the time he completed his diploma in 2020, his outstanding fees had soared to R180,000. As a result, he has been unable to obtain his diploma or even an academic record, leaving him jobless and unable to further his education.
“When I was supposed to graduate, I found out NSFAS had not paid any of my fees. Now, I can’t apply for jobs, internships, or further studies. Every institution asks for proof of my qualification, which I don’t have,” Bongani said. Despite multiple attempts to resolve the issue with both TUT’s financial offices and NSFAS, Bongani remains stuck, unable to move forward.
Widespread Impact on Students
Bongani’s story is not unique. A University of Johannesburg (UJ) student, who wished to remain anonymous, shared a similar experience, stating that she owed R100,000 in unpaid fees. Attempts to seek answers from NSFAS have been met with frustration, as NSFAS redirects students to their institutions’ financial aid offices, which, in turn, blame NSFAS for delayed payments.
“Some companies require an academic record, but we can’t get them because of unpaid fees. We are forced to obtain academic records through background-check platforms, but those don’t have an official stamp and aren’t always accepted. It’s a huge, huge problem, and I don’t feel like NSFAS or UJ is doing enough to ensure that unsettled fees are paid,” she said.
NSFAS and Institutional Accountability
Deputy Minister of Higher Education and Training, Dr. Mimmy Gondwe, recently criticized NSFAS, describing it as incompetent. She acknowledged the serious problem of pending academic results, emphasizing that graduates cannot begin job searches without their qualifications.
“We need to assist to ensure that the results are released so that learners can go out and those that need to find jobs can do so,” Gondwe stated.
Advice Chuma, a representative of ActionSA Gauteng Youth Forum, highlighted the demotivating impact of this financial deadlock on students. Many are left unable to progress in their education, with some stuck in their second, third, or fourth year of studies due to unpaid fees.
Landlords and Accommodation Providers Suffer
The NSFAS debt crisis is not only affecting students but also landlords and student accommodation providers. A private student housing association, which accommodates over 80,000 students, recently revealed that NSFAS owes R44 million to its members since 2024. The association warned that students might lose their accommodation if the outstanding debts are not settled soon.
Njabulo Kutu, a landlord from the Vaal area, disclosed that he is owed R350,000 in unpaid rent. Despite repeated attempts to obtain a payment commitment from NSFAS, he has received no response.
“There are landlords who are owed higher amounts than me. Some have taken out loans to keep their businesses running, while others have had to evict students because they simply could not afford to accommodate them any longer. And others even lost their property. This is not just affecting us… it’s affecting the students too,” Kutu explained.
NSFAS Mismanagement and Mental Health Concerns
NSFAS’s mismanagement of funds has not only resulted in financial hardship for students but has also raised concerns about mental health. Chairperson of the Portfolio Committee on Higher Education, Tebogo Letsie, revealed that NSFAS has previously funded students who were not eligible, only to defund them mid-year, causing immense distress.
The uncertainty and stress caused by unresolved debts, combined with the inability to access academic records, have led to severe emotional strain for many graduates. Without intervention, the crisis is set to worsen, leaving countless students and service providers in dire financial straits.
Need for Urgent Action
As this crisis continues, the question remains: what steps will NSFAS, higher education institutions, and the government take to resolve these outstanding debts? Immediate action is required to ensure that deserving graduates receive their academic qualifications and that students can continue their studies without being burdened by financial uncertainty. Until NSFAS finds a sustainable solution to these payment delays, South Africa’s future professionals will remain stuck in a cycle of unemployment and frustration.
Conclusion
The NSFAS debt crisis is a major setback for graduates, students, and service providers. Urgent reforms and accountability measures are needed to resolve unpaid debts and restore hope for South Africa’s youth. Without immediate intervention, the future of many remains uncertain.
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