Understanding the NSFAS Academic Eligibility Crisis

The National Student Financial Aid Scheme (NSFAS), South Africa's primary bursary program for underprivileged students pursuing higher education at public universities and Technical and Vocational Education and Training (TVET) colleges, has hit a significant roadblock for the 2026 academic year. Over 189,000 continuing students—those who previously received funding—have been deemed ineligible due to failing the strict academic promotion criteria. This development, announced in early February 2026, underscores the scheme's emphasis on performance accountability amid ballooning enrollment pressures in the country's higher education sector.

NSFAS, established under the National Student Financial Aid Scheme Act of 1999, provides comprehensive bursaries covering tuition, accommodation, living allowances, and learning materials for eligible students from households earning less than R350,000 annually. For 2026, the scheme processed nearly 900,000 applications, approving over 660,000, but the high failure rate among continuing students has sparked widespread discussion on academic standards and support systems.

Breaking Down the Academic Progression Criteria

NSFAS enforces rigorous academic progression rules to ensure funded students advance efficiently. For continuing university students—from their second year onward—recipients must achieve a minimum pass rate of 60% across all enrolled modules. This means successfully completing at least 60% of the modules registered for in the previous academic year. TVET college students face a similar benchmark, generally aligned at 60% pass rate, though pathways may vary slightly by qualification level.

First-time entering students (FTEN) who began in 2025 have a slightly lower threshold of 40% for initial progression to 2026 funding. However, the bulk of the 189,222 affected students are continuing ones who fell short of the 60% mark. Additionally, around 5,000 university and 4,000 TVET students have outstanding results pending supplementary exams, leaving their status in limbo.

• University continuing students failing: 109,761
• TVET continuing students failing: 79,461
• University students meeting criteria: 436,924
• TVET students meeting criteria: 127,503

These rules align with the N+1 study rule, where N is the minimum years for a qualification, allowing one extra year for completion.

The Scale of Rejections and Financial Repercussions

The rejection of 189,222 students translates to substantial budget relief for NSFAS. In response, the scheme disbursed R4.27 billion upfront to institutions—R3.6 billion to universities for allowances and R679 million to TVET colleges for tuition—ensuring smooth starts for approved students. This move prevents the cashflow crises that plagued previous years.

Overall rejections exceeded 116,000 initially, with many due to academic shortfalls alongside document issues.

Why Are So Many Students Failing the Criteria?

Several factors contribute to this high failure rate. Systemic challenges in South African higher education, including underprepared incoming students from under-resourced schools, play a role. Many NSFAS beneficiaries come from quintiles 1-3 schools with limited academic support.

Other contributors include personal hardships, inadequate study skills, and disruptions like load shedding or mental health issues. Universities report that first-generation students often struggle with the transition to self-directed learning.Preparing strong academic profiles early can help, as advised in higher education career resources.

The Appeals Process: A Lifeline for Affected Students

NSFAS offers appeals within 30 days of rejection notification via the myNSFAS portal. For academic failures, success hinges on proving extenuating circumstances with documentation such as medical certificates for illness lasting 2+ months, death certificates for family losses, or police reports for crime victimization.Official NSFAS appeals guidelines

Step-by-step:

• Log into myNSFAS and select 'Appeal'.
• Review rejection reason.
• Upload supporting documents (e.g., doctor's note, affidavit).
• Submit before deadline; decisions within 30 days.

Impacts on Students and Higher Education Institutions

For students, defunding means potential dropout, debt accumulation, or shifting to part-time work—exacerbating South Africa's 34% youth unemployment. Universities like University of Cape Town and Wits face enrollment gaps, straining revenue from self-funded spots.

TVET colleges, vital for vocational skills, see similar disruptions. Broader implications include widened inequality, as poor performance cycles perpetuate poverty.Recent analyses on SA higher ed readiness echo these capacity strains.

Stakeholder Perspectives and Reactions

Student unions like SAUS urge more support programs, while NSFAS defends criteria as promoting accountability. Acting CEO emphasizes direct payments to service providers from 2026 to curb corruption.

On X (formerly Twitter), posts highlight appeals urgency, with users sharing success stories amid frustration. University leaders call for bridging programs to boost pass rates.

Solutions and Support Strategies for Students

To avoid future pitfalls:

• Leverage university tutoring and academic advising.
• Build time management via apps and peer study groups.
• Seek counseling for personal barriers.
• Explore alternative funding like scholarships or part-time higher ed jobs.

Photo by Arturo Añez on Unsplash

Future Outlook for NSFAS and South African Higher Education

With budget reviews post-2026 allocations, NSFAS eyes inflation-adjusted allowances and stricter monitoring. Potential expansions for missing middle loans could alleviate pressures. Ultimately, investing in K-12 quality holds long-term promise.

For aspiring academics, platforms like Rate My Professor and university jobs in ZA offer navigation tools amid funding flux. NSFAS's tough stance may foster a more merit-driven sector.