NSFAS Non-Payments Leave Thousands of Students in Crisis

As universities reopen for the start of a new academic year, a growing number of students funded by the National Student Financial Aid Scheme are facing severe financial hardship linked to unpaid tuition fees. Thousands of beneficiaries are burdened with debts they are unable to clear, placing their education and future employment prospects at serious risk.

Key Takeaways

• Registration Barriers for Students: Outstanding tuition fees are preventing many students from registering for their courses, leading to delayed studies and, in some cases, permanent withdrawal from higher education.
• Graduates Locked Out of the Job Market: Universities withholding qualification certificates due to unpaid balances are limiting graduates’ ability to apply for jobs, worsening the impact of an already high unemployment rate.
• A Growing Socio Economic Crisis: The ongoing student funding challenges have moved beyond education alone, creating long term economic risks by restricting skills development, workforce entry and future income potential.

Student Debt Disrupts Education and Employment Pathways

A significant number of students have been prevented from registering for their courses because of outstanding balances on their accounts. For many, this has resulted in delayed studies, while others have been forced to abandon their academic journeys altogether due to the lack of financial alternatives.

Graduates are equally affected by the crisis. Many young professionals who have completed their studies are unable to enter the job market because universities are withholding qualification certificates until outstanding fees are paid. In an economy already strained by high unemployment, the situation has compounded the difficulties faced by graduates attempting to secure work.

With no immediate resolution in sight, the ongoing challenges surrounding student funding have evolved beyond an education concern and are increasingly viewed as a broader socio economic problem with long term consequences.

Scale of the Student Debt Problem

The scale of unpaid student debt has continued to escalate over recent years. In 2024, the former Minister of Higher Education reported that more than 600,000 students across South Africa were unable to receive their graduation certificates due to unpaid fees amounting to approximately R5.8 billion.

By the start of the 2025 academic year, the situation had worsened further. More than 120,000 students were unable to register because of outstanding balances owed to their institutions. Tshwane University of Technology was among the most affected, with reports indicating that over 63,000 of its students were carrying unpaid debt.

In total, it is estimated that more than 720,000 students and former students are currently impacted by unresolved tuition fees. This has effectively blocked them from registering for new academic years or formally completing their qualifications, leaving many in a prolonged state of uncertainty.

NSFAS Response and Funding Processes

In response to concerns raised by affected students, NSFAS has indicated that it is working through a reconciliation process to address discrepancies between institutional accounts and funding allocations. According to the organisation, the final disbursement of funds is made each November after student accounts have been reconciled with universities.

In cases where funding was incorrectly excluded, NSFAS has stated that upfront payments are made based on registration data supplied by institutions. However, continued funding is dependent on students meeting academic eligibility requirements, and all disbursements rely on validated registration information.

For students who no longer qualify for NSFAS bursaries, the scheme offers an alternative loan option. This loan is available to students whose household income falls between R350,000 and R600,000 per year, as part of the Department of Higher Education and Training’s Comprehensive Funding Model.

University Response and Lack of Feedback

Efforts were made to establish whether Tshwane University of Technology has introduced any measures to assist former students who are unable to obtain their qualifications due to outstanding debt. Questions were directed to the institution regarding possible relief programmes or alternative arrangements for affected alumni.

Despite these enquiries, the university did not provide any response. The lack of feedback has added to frustrations among students and graduates who remain uncertain about how they can resolve their debt and gain access to their academic achievements.

As the funding crisis continues, many students and alumni remain caught between unpaid fees, limited job opportunities and the absence of clear solutions. Without coordinated intervention from funding bodies and institutions, the long term impact on education and employment prospects is expected to deepen further.

Conclusion

The unresolved student debt crisis continues to place thousands of South African students and graduates in a cycle of exclusion, where financial barriers prevent both academic progression and entry into the labour market. The inability to register or access qualification certificates not only undermines individual career prospects but also weakens the country’s broader economic potential at a time of persistent unemployment. Without faster funding reconciliation, clearer accountability between institutions and NSFAS, and more flexible support mechanisms for affected students, the long term consequences of this crisis are likely to deepen, limiting skills development and delaying economic recovery.