Unpaid Debt: NSFAS leaves students struggling| Student Survival 2025

As the 2025 academic year commences, thousands of NSFAS beneficiaries are finding themselves buried in debt they cannot repay. 

Many students are unable to register due to outstanding fees, forcing some to abandon their studies altogether.

Graduates, now in the job market, are also feeling the impact of being unable to secure employment because universities are withholding their qualification certificates over unpaid debt. 

With rising unemployment and no clear solutions in place, the student funding crisis is not just an education issue but a growing economic disaster.

In 2024, former Higher Education Minister Blade Nzimande reported that over 600,000 students in South Africa were unable to receive their graduation certificates due to R5.8 billion in unpaid fees. 

By 2025, more than 120,000 students couldn’t register for the academic year because of outstanding fees, with institutions like Tshwane University of Technology (TUT) reporting over 63,000 students in debt.

In total, more than 720,000 students are impacted by student debt, preventing them from registering or graduating.

Affected students have expressed how they are struggling with the financial instability caused by unpaid fees, leaving them unable to register for courses or, in some cases, receive their qualifications. 

Palesa Legodi, a graduate from Tshwane University of Technology (TUT), shared the frustration of being unable to obtain her diploma due to outstanding fees. 

"It's been a year since I graduated, but I still haven't received my qualification certificate due to outstanding fees," she says.

Legodi, said despite being an NSFAS beneficiary, she still owes R30,000 to the university, and as an unemployed graduate, she is struggling to repay the amount.

 "What's even more frustrating is that I'm unable to apply for jobs because most companies require a certificate from the university," she explains.

Her debt has meant that her qualification remains out of reach, stalling any possible career prospects.

Similarly, Thobile Mnguni, another affected graduate, voiced her disappointment. 

"I'm severely impacted by NSFAS's failure to settle my fees. As a graduate, I'm unable to apply for jobs without a physical certificate confirming my qualification completion.

"Moreover, I'm denied access to my academic record due to outstanding debt," says Mnguni.

 "Despite exhausting all avenues, including contacting NSFAS and seeking assistance from student leaders, I've had no success. It's demoralising to feel that my three years of hard work have been in vain."

Current students are also facing similar challenges.

Lindokuhle Shezi, a third-year student at Tshwane University of Technology, is struggling to continue her studies due to a debt of R87,000. 

"To register for my third year, I need to settle at least 10% of this amount, which is currently beyond my means," she says.

With the registration deadline approaching, Shezi fears dropping out and has turned to social media in hopes of finding financial support.

In response, Ishmael Mnisi, NSFAS spokesperson, explained that the organisation is addressing such issues through a reconciliation process. 

He further clarified that NSFAS makes the final disbursement each November following the reconciliation of student accounts, and in cases where funding was erroneously omitted, NSFAS makes an upfront payment based on registration data received from institutions.

However, Mnisi stressed that students must meet academic eligibility to continue receiving funding, and NSFAS funds are disbursed based on validated registration data.

For students unable to settle their outstanding fees, NSFAS offers a loan scheme. 

"Students who no longer qualify for the NSFAS bursary can apply for the NSFAS Loan," Mnisi added. 

This initiative allows students whose parents earn between R350 000 and R600 000 per annum to access additional funding, as part of the Department of Higher Education and Training's Comprehensive Funding Model.

In an attempt to understand whether Tshwane University of Technology (TUT) has any initiatives or programs in place to assist alumni like Legodi and Mnguni in obtaining their qualifications despite outstanding debts, IOL reached out to the institution for comment.

However, TUT chose not to respond to these inquiries.

IOL News