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National Student Financial Aid Scheme – Logframe

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In 2014, NSFAS managed the disbursement of R8.96 billion in loans (R4.1 billion), TVET grants (R1.9 billion) and bursaries (R2.8 billion). The NSFAS loans supported 123 531 undergraduate students, or 15% of total undergraduate enrolment. If the number of students with such loans were to increase to 25% of enrolment (i.e. 261 842) in 2030, the value of NSFAS loans disbursed would have to increase to R21.4 billion.Given the design of the NSFAS loan scheme, it will always depend on government grants to remain viable and to expand. For various reasons, NSFAS’s debt management capabilities are poor, and have been undermined by policy decisions that limit its scope for using normal debt management tools. This has led to a collapse in NSFAS debt recoveries, and cost NSFAS (and government) an estimated R3.7 billion between 2010 and 2014, which could have funded another 117 500 students.