The Ministry of Education, Innovation, Youth, Sports, Arts and Culture has confirmed that the tertiary subsidy coming into effect in 2026 will not settle any existing or future debts owed by students to higher education institutions.
The clarification forms part of the rollout of the Subsidised Tertiary Education Funding Model, which will remove registration and tuition fees only for eligible first-time undergraduate students.
Minister Sanet Steenkamp said students currently owing fees must negotiate repayment terms directly with their institutions, as the subsidy is not structured to write off arrears.
She noted that continuing NSFAF beneficiaries who meet the new criteria will move to the subsidy in 2026, while those who do not will continue under NSFAF loan conditions. “All loans already issued by NSFAF remain repayable under the existing terms. Postgraduate studies remain excluded from the subsidy,” she said.
The Minister said the position will remain in place until a national list of priority fields of study is finalised.
“The list, to be produced by NSFAF in collaboration with the National Council for Higher Education, will later define which postgraduate programmes may qualify for state support. Until then, only undergraduate and TVET students at NQF Levels 1 to 8 fall within the subsidy,” she said.
According to the ministry, the temporary exclusion allows time to set eligibility rules, determine skills gaps and align future postgraduate support with the national human resource development strategy.
Steenkamp added that current postgraduate students funded through NSFAF will continue under the loan system until they graduate.
She said the model’s focus on primary qualifications is intended to broaden access while maintaining financial sustainability. She added that the phased approach provides scope for adjustments once the national priority list and programme costing mechanisms are in place.
