As the specter of budget cuts hangs over the National Student Financial Aid Scheme (NSFAS), hundreds of students are facing uncertainty and anxiety about their academic futures. GroundUp recently reported that due to reductions in funding from the National Treasury, more than 87,000 university students could lose their financial support in 2024.
Masile Ramorwesi, the Acting CEO of NSFAS, explained that a 10% reduction in university funding, as outlined in the Medium Term Budget Policy Statement (MTBPS), would result in 87,712 students being left without funding in the 2024 academic period. This number is projected to rise to 120,976 students in the following academic year.
The projected budget for universities by NSFAS is R41.9 billion for 2024/25 and R43.7 billion for 2025/26. However, with the anticipated 10% budget cut, a shortfall of R5.5 billion in 2024/25 and R8.1 billion in 2025/26 is expected.
Ramorwesi further stated that the projected budget for Technical Vocational Education and Training (TVET) colleges is R9.7 billion for 2024/25 and R10 billion for 2025/26. A cut of R970 million is anticipated for the 2024/25 financial year, with an additional R1 billion cut in the 2025/26 financial year.
Students like Naene Magadani and Masego Letsoalo express their concern and frustration over delayed allowances and the uncertainty surrounding the funding selection process. Magadani, a University of Venda student, shared that instead of alleviating financial stress, NSFAS has become an additional burden. Letsoalo highlighted the confusion among students, unsure about the application and registration processes for the upcoming academic year.
The potential impact on students’ dreams and aspirations is profound. Witness Thanzi mentioned considering applying for bursaries, emphasizing the financial challenges her family faces.
Asive Dlaniwa, spokesperson for the SA Union of Students, criticized the budget cuts and suggested alternative measures should have been explored. Dlaniwa expressed concerns about the lack of transparency regarding how funds will be allocated in light of the budget cuts.
Phethiwe Matutu, CEO of Universities SA, revealed that universities were not consulted on the matter. Matutu highlighted the disappointment and broken promises faced by students who were assured of financial support, only to discover there is no funding available when they apply.
With the looming funding crisis, students, education advocates, and university officials are calling for a reconsideration of the budget cuts, urging the government to prioritize education as a crucial investment in the nation’s future.