Minister cancels NSFAS headquarters lease to cut costs

The Portfolio Committee on Higher Education and Training has endorsed the plans proposed by Minister Dr. Nobuhle Nkabane to terminate the National Financial Aid Scheme (NSFAS) headquarters’ lease in Cape Town. The decision to vacate the premises, located in the city centre, has been long overdue, according to Committee Chairperson Tebogo Letsie.

Letsie noted that the Cape Town headquarters had been a consistent source of contention, particularly given NSFAS’s move from a leased building in Wynberg to a more central—and more costly—location. “While students grappled with delayed funding, housing shortages, and missed allowances, NSFAS operated from offices with scenic views,” Letsie remarked, pointing to the stark disconnect between the organisation’s setting and the realities faced by many of its beneficiaries.

The decision to terminate the lease is seen as part of a broader cost-cutting initiative, and the Committee has welcomed it as a necessary step in addressing what it perceives as years of mismanagement at NSFAS. Letsie further reiterated that the choice to relocate the headquarters to Cape Town had always been flawed, as it placed NSFAS far from the majority of its stakeholders, particularly the large student population concentrated in Gauteng.

The Committee has long advocated for NSFAS’s headquarters to be based in Gauteng, given the high density of students in the region. Moreover, Letsie expressed the Committee’s hope for future decentralisation, allowing NSFAS to have a presence in all regions, ensuring more equitable access to services across South Africa.

The Committee also welcomed the forthcoming launch of NSFAS’s 2025 online application process, set to begin on 20 September, which will involve consultations with institutions, stakeholders, and student groups.

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Payment problems

NSFAS is in the process of severing ties with its direct payment partners, a move that has generated considerable frustration among students and triggered legal challenges over the legality of those contracts.

The troubles at NSFAS escalated earlier this year when the board was dissolved on 11 April, and the scheme was placed under administration the following day. In response, Minister Nkabane has initiated efforts to reconstitute the NSFAS board, publishing a Government Gazette in August to solicit nominations for new members.

In parallel, NSFAS has faced delays in opening its 2025 application cycle, originally set for an earlier date but now scheduled to begin on 20 September. The postponement followed consultations with various student organisations, including the student chapters of the EFF, PAC, DA and MK, as well as the South African Union of Students and the Further Education and Training Students’ Association.

According to Nkabane, the delay was necessary to allow NSFAS to conduct a “dry run” of its online application system with key stakeholders. Feedback from this exercise has led to adjustments aimed at simplifying the process and making it more accessible.

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