Over 40,000 students who did not qualify for National Student Financial Aid Scheme (NSFAS) support received the funds between 2018 and 2021, costing the state more than R5 billion, according to reports tabled in Parliament. The Special Investigating Unit (SIU) has recovered more than R126 million from 1,055 parents and unqualified beneficiaries found to have fraudulently obtained these funds, while the National Prosecuting Authority (NPA) is continuing criminal investigations.

Government Investigations And Financial Recovery

The SIU informed Parliament’s Standing Committee on Public Accounts in April 2023 that significant misallocation of NSFAS funds had taken place, with undeserving recipients, including those from families with means, exploiting the system. The NPA confirmed on 5 February 2026 that 1,055 parents are under investigation for claiming over R126 million meant for students from poor backgrounds. Additionally, the SIU announced on 8 February 2024 that it had recovered in excess of R688 million in misused funds from various tertiary institutions.

Minister of Higher Education, Dr. Blade Nzimande, revealed on 30 April 2024 that NSFAS has been losing over R21 million a year to corruption since 2017, with the total exceeding R128.5 million. He emphasised, “It must be emphasised that NSFAS is not a social grant, but an education grant aimed at assisting students from working class and poor families to access university and college education.”

Broader Impact On Access To Higher Education

Fraudulent activity by wealthier families and institutions has directly deprived many low-income students of the opportunity to access tertiary education. Parliamentary Portfolio Committee Chairperson Mr. Phill Mapulane stated, “The committee takes a zero tolerance stand to fraudulent and corrupt activities, especially when investment is made towards expanding access to education and training for the historically disadvantaged people.”

Since 2018, the number of ineligible recipients has undermined the integrity of South Africa’s higher education support system. The SIU and NPA continue to investigate and institute recovery proceedings, while the Department of Higher Education has called for strict measures to ensure NSFAS funds are used for their intended purpose and to hold perpetrators accountable. Minister Nzimande said, “We cannot allow NSFAS money to be abused. Those abusing it must be nailed because they are stealing from the poor.”

Further recovery efforts and prosecutions are expected as investigations continue into misallocated NSFAS funding.