- NSFAS owed R45 billion in unpaid student loans.
- Graduates earning R30,000+ must start repayments.
- Five debt collection firms appointed to recover funds.
- Funding shortfall of R10.6 billion impacts new students.
The National Student Financial Aid Scheme (NSFAS) has launched an aggressive debt recovery campaign to collect R45 billion owed by former beneficiaries who received funding before 2018.
According to NSFAS CEO Waseem Carrim, the program is under increasing strain because of growing demand, growing expenses, and dwindling government funding.
“Many beneficiaries have graduated, are now working, but are refusing to pay back what they owe. This money must be repaid so it can help fund other students in need,” Carrim said.
Graduates Earning Over R30,000 Targeted
NSFAS will prioritize collecting repayments from graduates earning R30,000 and above per month, with repayment amounts linked to income levels. Carrim emphasized that repayment is not optional:
“If you were supported by NSFAS and are now employed, you must start giving back.”
Debt Collection Firms Appointed
To enforce repayments, NSFAS has appointed five debt collection companies:
- Khumalo Masondo Attorneys Incorporated
- New Integrated Credit Solutions (Pty) Ltd (NICS)
- Ncube Incorporated Attorneys
- Morkalio Revenue Solutions (Pty) Ltd
- QLink Holdings (Pty) Ltd
Board chairperson Dr. Karen Stander assured graduates and employers that all repayments must be deposited only into NSFAS accounts, warning against fraudulent claims.
Funding Shortfall Threatens Students
The program is short R10.6 billion even though it will support 783,000 students in 2025, including 576,000 in universities and 206,000 in TVET institutes. This hardship has left thousands of college students without financial aid.
According to NSFAS, 87,121 first-year applications were initially declined, with 14,700 officially rejected, while 38,243 were approved. A further 5,915 applications remain under review.
Carrim said talks are ongoing with the Department of Higher Education to secure emergency funding.