The South African Union of Students (SAUS) has sounded the alarm over what it describes as a growing national crisis in higher education, accusing the Department of Higher Education and Training (DHET) and the National Student Financial Aid Scheme (NSFAS) of failing thousands of students through delayed payments, inadequate allowances, unresolved funding disputes and slow administrative processes. Following a high-level meeting with NSFAS officials on 24 June 2026, the student body says the challenges confronting students have reached a point where they threaten not only academic success but also students’ ability to eat, secure accommodation and complete their qualifications.
At the centre of SAUS’ concerns is the argument that higher education funding has failed to keep pace with South Africa’s rising cost of living. While inflation continues to increase the price of food, transport, accommodation and study materials, the Union argues that NSFAS allowances have remained largely stagnant, forcing many students to survive on budgets that no longer reflect economic realities. SAUS contends that this situation has normalised student hardship, where hunger, financial stress and uncertainty have become accepted features of university life instead of urgent policy concerns.
One of the Union’s strongest demands is an increase in the monthly meal allowance, which currently stands at R1,650 per month for qualifying students. SAUS argues that this amount is no longer sufficient to provide students with adequate nutrition, particularly as food prices continue to rise across the country. The organisation is calling for the allowance to be increased immediately to R2,000 per month, representing an increase of R350. While this may appear modest on paper, SAUS argues that the additional funding could make a significant difference to students who often skip meals or rely on inexpensive, nutritionally inadequate food simply to stretch their budgets. According to the Union, academic performance cannot be separated from students’ basic needs, as learning becomes increasingly difficult when students face chronic hunger.
The organisation also wants broader reforms to student financial support. Beyond meal allowances, SAUS is demanding increases in book allowances, accommodation allowances and transport allowances, arguing that all forms of student support should reflect current living costs rather than outdated funding models. It has further called for the NSFAS household income threshold to increase from R350,000 to R400,000 per year, saying the current limit excludes many families who earn above the threshold but still cannot afford the cost of higher education. Often referred to as the “missing middle,” these households frequently earn too much to qualify for full financial aid but too little to comfortably finance university education themselves.
Another major dispute centres on approximately 12,000 students affected by what NSFAS refers to as the Gap Investigation process. According to NSFAS, these investigations were initiated after discrepancies were identified in certain funding approvals. However, SAUS argues that these students had already been approved, registered for their studies, secured accommodation and begun the academic year based on official funding decisions. The Union believes it is fundamentally unfair to withdraw financial support months later because of administrative reviews that students neither caused nor controlled.
The consequences of losing funding midway through the academic year are severe. Students whose funding is withdrawn may immediately become liable for tuition fees, residence costs and other university charges that they cannot afford. Many risk accumulating institutional debt, losing their accommodation, facing financial exclusion and ultimately being unable to complete their qualifications. SAUS insists that every student whose funding was initially approved should have that funding reinstated until the administrative investigations are concluded, arguing that government departments should bear responsibility for correcting their own systems rather than transferring the consequences to vulnerable students.
The Union has also criticised the implementation of the NSFAS Loan Scheme, describing it as a programme that has failed to deliver meaningful financial assistance despite substantial government investment. Introduced to assist students who do not qualify for traditional NSFAS bursaries, particularly those studying scarce and critical skills such as science, technology, engineering and mathematics (STEM), the loan scheme received approximately R3 billion in government funding. Over the past three years, more than 50,000 students have reportedly submitted applications.
According to SAUS, many applicants have received notifications indicating that they qualify or have been approved for funding, yet very few have actually received payments. The organisation argues that approval without disbursement provides little practical benefit to students who still cannot pay tuition fees, accommodation or other educational expenses. SAUS says it was informed during discussions with NSFAS that implementation of the loan scheme remains delayed because final concurrence is still required from the Office of the Minister of Higher Education and Training. The Union maintains that students should not continue waiting indefinitely while administrative processes delay financial support already announced by government.
Equally concerning for SAUS is the continued delay in completing the NSFAS Close-Out Project, an initiative intended to settle historical funding disputes between NSFAS and higher education institutions. According to the Union, approximately R29 billion remains outstanding to universities and colleges. These unresolved payments have left many students in an impossible position. Although they were funded throughout their studies, their institutional accounts remain unpaid because of outstanding reconciliations between NSFAS and institutions. As a result, some graduates cannot collect their academic certificates, while others are prevented from registering for postgraduate studies or continuing their education because universities continue reflecting outstanding debt on their accounts.
SAUS argues that graduates should not suffer the consequences of administrative disputes between public institutions. Delays in releasing academic certificates can directly affect employment prospects, as many employers require official proof of qualification before finalising appointments. In a country already struggling with exceptionally high youth unemployment, the Union believes these delays unnecessarily prevent graduates from entering the labour market.
Delayed payment of student allowances remains another major concern. SAUS says it continues receiving reports from institutions where qualifying students have not received their allowances on time or have received incomplete payments. The Union highlighted reports from some universities where students were allegedly informed that payment delays resulted from administrative confusion involving NSFAS applications across different sectors of post-school education. According to SAUS, delayed allowances have immediate real-world consequences. Students unable to purchase food, pay rent or travel to campus often experience interrupted studies, increased debt and significant emotional stress.
Student accommodation also remains a source of ongoing concern. While SAUS continues supporting proposals for NSFAS to assume greater responsibility for student accommodation nationally, it argues that stronger oversight is urgently needed to address poor-quality residences. The Union has called for contracts with accommodation providers that consistently fail to meet acceptable standards to be terminated. It wants affected students relocated to safer accommodation through coordinated efforts involving universities, Student Representative Councils (SRCs) and NSFAS officials. Concerns raised include overcrowding, unsafe buildings and accommodation environments that undermine students’ ability to study effectively.
Beyond NSFAS itself, SAUS has also raised concerns regarding Sector Education and Training Authorities (SETAs). These organisations administer bursaries and skills development funding across various sectors of the economy. According to the Union, several SETAs have allegedly failed to honour funding commitments, leaving institutions unpaid and students without allowances. SAUS says it intends engaging directly with affected SETAs to obtain explanations and firm payment plans to resolve outstanding obligations.
The Union further expressed disappointment with the 2026 DHET Funding Guidelines, arguing that they ignored many of the proposals submitted by organised student formations. Among the issues SAUS says were overlooked are increases to allowance values, accommodation funding limits, transport support and revisions to funding eligibility criteria. According to the organisation, releasing funding guidelines without adequately considering student submissions undermines meaningful consultation and fails to reflect the financial realities confronting many students.
Underlying all of these concerns is a broader warning that South Africa’s higher education system is becoming increasingly unstable. SAUS argues that many of the gains achieved through decades of student activism, including the Fees Must Fall movement, risk being undermined by administrative delays, policy uncertainty and insufficient implementation. While acknowledging the importance of continued engagement with government, the Union has indicated that patience among students is wearing thin.
SAUS has called on Student Representative Councils, student organisations, political formations and other campus structures across all 26 public universities to begin preparing for coordinated action should government fail to resolve these issues. Over the coming weeks, the Union plans to consult widely with student leaders before determining an appropriate national programme of action if no meaningful progress is made.
The organisation maintains that its immediate priorities remain clear: increase meal and accommodation allowances, reinstate funding for students affected by the Gap Investigation process, pay all outstanding NSFAS allowances without further delay, settle historical institutional debt through the Close-Out Project and ensure that every qualifying student receives the financial support promised to them. For SAUS, these demands are not simply financial requests but fundamental requirements for protecting equal access to higher education. As South Africa continues investing in developing future professionals, graduates and skilled workers, the Union argues that students cannot be expected to build the country’s future while struggling to afford food, accommodation and the basic resources needed to complete their education.