When the National Treasury released its 2026 budget, the numbers confirmed what many in higher education had feared for months. The National Student Financial Aid Scheme (NSFAS) would receive R54.3-billion for the current financial year, a reduction of R3.7-billion from the previous allocation.
This has put pressure on students, with many forced into the gut-wrenching vulnerability of posting banking details and study information on social media.
The funding gap
NSFAS officials say the funding scheme received a record 893,847 applications for 2026.
By the start of the academic year, 609,653 applications had been approved. However, 49,538 applications were rejected, and 218,043 were marked as incomplete, leaving them without state funding.
In late 2025, NSFAS anticipated the budget cuts, warning of a projected R14-billion deficit, and the possible exclusion of over 100,000 eligible students. The South African Union of Students (SAUS) described the situation as a failure of political will, highlighting that there was no alternative funding mechanism suggested by national government.
For the lucky few, private funding like bursaries was an alternative, but for others, turning to the growing trend of crowdfunding was the only option. And with it come difficulties and uncertainty.
The crowdfunding option
With the beginning of an academic year, deadlines are approaching, outstanding fees are accumulating, and a growing number of unfunded students are turning to crowdfunding platforms. For the lucky ones, the crowdfund cover fees (usually outstanding) and registration.
One Political Studies student from the University of Johannesburg (UJ), Chuma Ndlela*, owed money from his previous postgraduate qualification which he says NSFAS was supposed to pay. As a result of the debt, he forfeited a departmental bursary.
>Ndlela’s financial struggles saw him sleep at the library on campus on days which he could not afford to travel back home.
“A friend recommended crowdfunding to me as it had worked for him, but emotionally and mentally the process was daunting. I ended up not getting my debt cleared, and I still am paying. This whole thing was in 2024,” Ndela explained.
Ndlela says financial exclusion limited his opportunities, like a job at UJ because he was not registered.
Today, Ndlela does not have access to his Honours transcript to apply for employment or further studies, even though he knows he has passed. He found Honours draining, as the outstanding fees he claims NSFAS was liable for, held him back. Ndlela’s crowdfunding efforts failed and he is now paying off the debt.
Social media is not always the answer
For Liyabona Dlamini*, a R25,000 debt remained from his undergrad Bachelor of Commerce studies at UJ when he says NSFAS also ditched him. Dlamini was fortunate enough to pay some of his fees through crowdfunding.
He explains that it was a challenging time, as he had to work as a cashier to pay off about R10,000, while crowdfunding paid for the other R15,000. While he was settling the debt, he was unable to get his degree and apply for jobs related to his studies.
“It was draining, studying hard and not being able to secure a job because companies need to see your academic transcript, and it being held back because of a debt that NSFAS was supposed to pay,” Dlamini mentioned.
He claims that he was lucky to settle the debt as he has seen people asking for help on social media, and never getting assistance.
NSFAS funding
When asked for comment about Dlamini and Ndlele’s outstanding debt, NSFAS said it cannot speak about these cases, as it does not have the students’ details. The scheme did however explain how it’s funding generally works.
Firstly, when a student becomes a NSFAS beneficiary only at a later stage in their academic journey (after first year for example), they would need to settle any outstanding amounts.
Secondly, if a NSFAS-funded student fails to meet the academic progression criteria as per their bursary agreement, then they have to self-fund and complete with debt.
Lastly, a student has to contribute to their studying expenses when they incur costs which are outside the NSFAS funding policy, such as choosing accommodation that is more expensive than the accommodation cap.
Funding problems add to stress
Chantal Mukwevho from the University of Mpumalanga is studying for a Bachelor of Education degree. She told Sunday World that she used social media to raise registration money.
“I posted a screenshot of what my registration costs were and the university banking details alongside my student number as reference, even though I was not too comfortable doing this but I had not choice,” she said.
Unfunded students who are forced to turn to crowdfunding, experience an additional layer of stress and uncertainty on top of the already difficult transition into higher education.
Whether this social media trend is a temporary response to budget pressures or a longer-term shift in how students finance their education, remains to be seen.
*Not their real names.
