NSFAS reveals shocking R45bn debt — here’s who must repay

While thousands of students still struggle to secure funding, NSFAS says billions remain unpaid by former beneficiaries - and it’s now demanding graduates start repaying their loans.

National Student Financial Aid Scheme (NSFAS) CEO Waseem Carrim has revealed that the scheme is owed R45 billion in outstanding student loans.

Carrim said the loans date back to 2018 and earlier, and were granted by NSFAS and its predecessor, the Tertiary Education Fund of South Africa (TEFSA).

NSFAS was established in 1996 to provide financial assistance to students. Initially, it was run by TEFSA, a non-profit organisation set up in 1991. 

TEFSA administered the fund until 2000 and was officially converted into a statutory body in 1999, becoming NSFAS.

Carrim admitted that NSFAS has struggled with recovering debts over the years.

"It has not had the best debt management strategy. But we cannot, as a board and management, continue to sit on that substantial amount of debt and not collect it," he said.

He added that many of the students who benefited from NSFAS loans are now employed.

"We know that the majority of graduates in South Africa are employed. Therefore, our view is that students who took up loans, graduated as a result of the fund, and are now employed must repay their debt - not only to NSFAS but to society as well."

Carrim stressed that repaid funds would be used to support new students in need of financial aid. 

This comes as many students across public institutions continue to face hardship, including delays in allowance payments, unresolved applications, and poor communication, which have left some struggling to meet basic needs like food and housing.

Students have also been raising complaints regarding the safety and quality of NSFAS-accredited accommodations, including inadequate sanitation, poor infrastructure, and security concerns.

Meanwhile, NSFAS board chairperson Karen Stander confirmed that the fund is reaching out to former loan recipients who received financial aid before 2018.

She said they are reminding them of their contractual obligation to repay once they earn more than R30,000 per year.

“The minimum monthly repayment amount is determined by income level,” she said.

“Debtors earning above R30,000 per year who are not currently making the minimum repayments may have their accounts handed over to an External Debt Collector (EDC).”

Stander announced that as of August 2025, NSFAS has formally appointed several entities to act as authorised EDCs to recover outstanding debt. 

These include Khumalo Masondo Attorneys Incorporated, New Integrated Credit Solutions (Pty) Ltd (NICS), Ncube Incorporated Attorneys, Morkalio Revenue Solutions (Pty) Ltd, and QLink Holdings (Pty) Ltd.

“This confirmation is issued to provide assurance to debtors, employers, and stakeholders regarding the EDCs currently authorised to engage in NSFAS loan recovery activities,” she added.

simon.majadibodu@iol.co.za

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