Graduates trapped in NSFAS unsettled debts

Some graduates say their unpaid debts linked to the National Student Financial Aid Scheme (NSFAS) have trapped them in a cycle of financial and professional uncertainty as they're unable to access their academic records or qualifications.

One of them, Bongani Khumalo, a TUT graduate, said the NSFAS payment delays have turned his diploma into a useless piece of paper.

“I started studying in 2016 and was provisionally accepted by NSFAS. They paid for my registration but I couldn’t get accommodation money, so I had to rent for six months before I was placed in a residence,” he explained.

However, the real trouble started when he realised that NSFAS had not covered his tuition fees, forcing him to sign Acknowledgment of Debt (AOD) agreements just to continue studying.

By 2020, Bongani had completed his studies, but his outstanding fees had ballooned to R180,000, leaving him unable to receive his diploma or even an academic record.

“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,” he said.

Despite engaging with both TUT’s financial offices and NSFAS, he said he remains stuck in limbo, caught between the university claiming NSFAS hasn’t paid and NSFAS insisting they have.

“It’s almost four years now, and I’ve been at home, unable to move forward. I lose opportunities every year because of this unsettled debt,” he said.

Recently, deputy minister of higher education and training Dr Mimmy Gondwe described NSFAS as incompetent. Gondwe said the issue of pending results was a problem as graduates could not start looking for jobs.

"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 said.

A student from UJ who wished to remain anonymous said she owes R100,000.

"Whenever you call NSFAS to inquire about when they will pay the outstanding fee, they say you must talk to financial aid offices at the campuses. But the institution has to process the payments from NSFAS, so it’s a problem, honestly,” the student explained.

Frustrated by the lack of accountability, the student believes both NSFAS and UJ are failing students who have done their part.

“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,” they said.

ActionSA Gauteng Youth Forum said the situation in the ground across institutions was highly demotivating.

“The saddest part is that the future of these students are in limbo as they will not be able to continue and finish their studies as others are on second, third or fourth year of their studies,” said Advice Chuma.

Some owners of NSFAS-accredited accommodation said they were also feeling the impact and are now facing severe financial strain.

Two weeks ago, a private student housing association, which provides accommodation to more than 80,000 students, said NSFAS owes R44m to its members since 2024.

It warned that students may not be able to return to the rooms if NSFAS fails to pay the outstanding debt soon. 

Njabulo Kutu, a landlord in the Vaal area, said he is owed about R350,000 in unpaid rent and was deeply concerned about NSFAS’s lack of urgency in addressing the issue.

“I have communicated with them multiple times, trying to find out when we will be paid, but there has been no real response or commitment. The reality is that I do not have the financial means to recover this debt myself,” he said.

Kutu, who also represents other landlords in the Vaal, said he was not alone in this crisis.

“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,” he said.

In his recent address in parliament, chairperson of the portfolio committee on higher education Tebogo Letsie said NSFAS had in the past wrongfully funded students who were not eligible, leading to the defunding of such students mid-year and causing mental health problems.

Sowetan reached out to NSFAS to get comment on the problems raised by the graduates. However, they still had not replied four days later.

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