The National Student Financial Aid Scheme (NSFAS) has terminated funding for 6,514 students within the 2026 academic year after the students were determined to have failed the applicable academic progression requirements.
The issue has sparked concerns regarding the short-term impact on students who may have already incurred accommodation, registration and other costs.
The figure was confirmed during a briefing to parliament on 12 August 2026, based on the information supplied for this report.
The issue arises as NSFAS itself is currently undertaking a stabilisation process, having been placed under administration earlier in the year due to governance and operational concerns.
Thousands of students affected mid-year
NSFAS funding is subject to academic progression requirements.
Students who do not satisfy the applicable requirements may lose their financial support.
In this instance, 6,514 students have been terminated from the NSFAS funding system during the 2026 academic year after failing to meet applicable progression standards.
The issue is particularly acute for the affected students, who had already enrolled for the academic year before their funding was cancelled.
597 students impacted at two universities
The impact has been reported at the level of individual institutions.
At North-West University and the Cape Peninsula University of Technology (CPUT), 597 students in total were affected, including 193 final-year students, according to the information supplied.
The situation is particularly sensitive for students close to completing their qualifications, as losing financial support during their final year creates uncertainty regarding their ability to finish their studies.
It should be emphasised, however, that the information supplied does not confirm that all affected students have been academically excluded or removed from their institutions.
Why mid-year cancellation affects students
A student who loses their funding after the academic year has already started may be faced with costs that they do not immediately have the means to pay.
Such costs may relate to tuition, accommodation and other expenses.
Students may also be negatively affected if they have outstanding charges with their institution.
A student who lives in university or private accommodation may specifically be affected if the student has no means of paying the accommodation costs.
The impact will be different at each institution and will depend on the student’s circumstances and the funding regulations that apply to them.
Minister responds to concerns over administration problems
Higher Education and Training Minister Buti Manamela has responded to concerns that students are bearing the cost of administrative issues within NSFAS.
The Minister has indicated that institutions will be requested not to penalise students if the issue relates to NSFAS administrative problems.
This is an important distinction.
Students who have failed to meet academic progression requirements are in a different position to students who have been affected by NSFAS administrative problems.
Any student who believes they have been affected by an NSFAS administrative error should utilise the applicable appeal or review process, rather than automatically accepting a funding cancellation decision.
=Students should check whether they are eligible to appeal to NSFAS=
An affected student should first ascertain the reason why NSFAS has cancelled their funding.
If the reason relates to academic progression, the student should review the applicable academic progression requirements and compare these to their own academic record.
If the student believes the information on which NSFAS based its decision is incorrect, they should contact the relevant institutional financial-aid office and follow the NSFAS appeals process (where applicable).
Affected students should retain copies of:
NSFAS funding notifications.
Academic records and results.
Appeal submissions and supporting documents.
Correspondence with NSFAS and the institution.
Notification regarding registration and accommodation.
Documentation will be useful if it becomes necessary to review a funding decision.
=NSFAS stabilisation makes mid-year funding issues more acute=
The NSFAS mid-year funding issue arises against a background of wider organisational stabilisation.
Minister Manamela placed NSFAS under administration in May 2026, citing governance instability and broader legal, financial and operational concerns.
In August, NSFAS administrator Professor Hlengani Mathebula submitted a stabilisation plan to the Minister, addressing the organisation’s governance, operational and institutional weaknesses.
The Public Protector has also recently reported on longstanding inefficiencies at NSFAS, while the Minister has acknowledged the need for urgent intervention.
Against this background, the latest NSFAS funding issue is occurring as the organisation undergoes a stabilisation process.
=What students should do if funding has been cancelled=
Students who have received a defunding notice should not simply give up on their studies without first investigating available options.
They should:
Check the reason for the decision
Carefully review the funding notice and determine whether the issue relates to academic progression, eligibility or another matter.
Speak to the institution
Contact the university or TVET college’s financial-aid office and clarify the implications for registration, accommodation and outstanding fees.
Check the appeal process
If the student believes the decision is incorrect or that exceptional circumstances were not considered, they should investigate the official NSFAS appeal process.
Keep documentation
Retain copies of any correspondence, academic results and supporting documents.
Avoid unofficial advice
Social media posts can contain misinformation regarding NSFAS policy.
=Students should not assume all NSFAS cancellations are the same=
The 6,514 figure represents students who lost funding for failing the applicable academic progression requirements, but each student’s situation will differ.
A student who failed the academic progression requirements is not in the same position as a student who was affected by an administrative error.
Students should determine the reason for their own funding cancellation before taking any action.
=Why academic progression requirements are important=
NSFAS funding is intended to support students through their post-school studies, but continued funding is subject to applicable rules.
Academic progression requirements exist to ensure that students who receive public financial aid are making satisfactory progress towards completing their studies.
For students, this means that receiving funding in one academic year does not guarantee continued funding for the remainder of a qualification.
Learners should, therefore, stay aware of their own academic progress and review the funding regulations applicable to their programme.
=The immediate concern is ensuring affected students are not derailed=
For the 6,514 affected students, the immediate concern is not whether they qualify for financial aid in principle, but rather whether they can continue studying without being forced into unsustainable debt or having to leave their institution before completing their studies.
The issue affecting the 6,514 students, therefore, raises the question of the efficiency of the funding system, the appeal process and the administrative procedures within NSFAS.
For NSFAS, the challenge is to enforce its academic requirements and ensure that administrative problems do not unduly disrupt students’ studies.
Source
Sources: Information supplied regarding the NSFAS parliamentary briefing of 12 August 2026; Department of Higher Education and Training; South African Government; Parliament of South Africa.
The general NSFAS stabilisation issue has been confirmed via government and parliamentary sources.
NSFAS information on the South African Government portal
Editorial policy
This article was independently produced for South African students and families, using the supplied information and official government sources for background.
The report differentiates between academic progression and administrative issues, and does not assume that all affected students are in the same position.
No unsupported claims have been made regarding individual students’ academic records, debts, accommodation status or chances of overturning a funding decision.
Disclaimer
NSFAS funding decisions depend on applicable rules and individual circumstances. The reported cancellation of funding for 6,514 students should not be taken to mean that every affected student has been excluded permanently or will not be able to continue their studies.
Students who believe a decision is incorrect should utilise the applicable official appeal or review process and obtain guidance from their institution.
Student awareness
If you receive an NSFAS funding change notice, do not pay anyone who says they can reinstate your funding for a fee.
Use official NSFAS and institutional channels to confirm your status, understand the reason for the decision and investigate whether an appeal or other remedy is available.
