Illustrative image | NSFAS logo. (Photo: Wikipedia) | Dr Karen Stander, former chairperson of the National Student Financial Aid Scheme (NSFAS). (Photo: GCIS) | Minister of Higher Education Buti Manamela. (Photo: Frennie Shivambu / Gallo Images) 
On Sunday, 2 November 2025, Dr Karen Stander, who had less than one year in her new job as chairperson of the National Student Financial Aid Scheme (NSFAS) board, resigned after citing a “toxic” work environment marked by racism, bullying, intimidation and personal threats at the entity.
Minister Buti Manamela, speaking to Daily Maverick after meeting with both Stander and the NSFAS board, including acting chief executive officer Waseem Carrim, admitted that Stander told him that NSFAS faces challenges that need to be addressed.
“The chair has resigned. She has given me reasons why she’s resigned and some of those, if further substantiated, may necessitate an investigation … We’ll definitely do so,” said Manamela.
Stander was appointed on 18 February 2025 by Dr Nobuhle Nkabane, the then minister of higher education and training, after the previous board was dissolved by Minister Blade Nzimande and the entity was placed under administration.
Read more: NSFAS board finally appointed in effort to fix financial and governance crises
In her resignation letter, Stander cited a “toxic” work environment marked by “racism, bullying, intimidation and personal threats”. According to reports by TimesLIVE, Stander stated that she could no longer effectively and conscientiously perform her duties due to the deteriorating conditions within the board.
“Regrettably, the environment within which the board has operated has become increasingly toxic, characterised by bullying, intimidation, racism and hostility. These conditions have made it impossible to continue discharging my duties effectively and in good conscience,” said Stander.
She added: “I genuinely believe that the current board, given a leader whom they respect and who fits more naturally within their social structures, may be better positioned to move NSFAS forward. Leadership is as much about context and trust as it is about technical competence, and a new chair may provide the cohesion and stability that the organisation urgently needs.”
Manamela said that this resignation was concerning for him. “Anybody who’s steering a ship that we want to stabilise and they resign, it’s obviously a loss. I think it was quite worrying, but also a symbol of concerns about a structure … She expressed to me what her concerns were. She framed them as key challenges that are facing the institution.”
/file/dailymaverick/wp-content/uploads/2025/11/ED_460799.jpg "Waseem Carrim at the launch of the South Africa National Human Development Report 2022 at ISIbalo House on 25 July 2023 in Pretoria, South Africa. (Photo: Gallo Images / Frennie Shivambu)")
Issues facing NSFAS
Aside from the shocking resignation of Stander, NSFAS has been plagued with issues of budget shortfalls despite receiving funds of R13.3-billion to support 34,000 students with blocked registrations and second-semester registrations of 15,000 students, late payments to landlords and issues with an irregular board.
Read more: Students out in the cold as NSFAS faces R10.6bn budget shortfall for universities
“What I’ve also said to the board is that there is concern about its composition and that we will be approaching the courts for self-review so that the court guides us on what needs to be done next. When the board was constituted, only people with certain qualifications were allowed to apply, and we’ve since been advised legally that this was inappropriate. So, we’ll be following a process to review that decision through the courts so that we can put in place a new board,” said Manamela.
Former minister Nkabane constituted the NSFAS board in February 2025 to restore integrity and operational efficiency to the student financial aid body. However, a new board is in the works.
Read more: NSFAS board finally appointed in effort to fix financial and governance crises
Meanwhile, the Democratic Alliance (DA) spokesperson on Higher Education and Training and member of the Portfolio Committee on Higher Education, Delmaine Christians, demands accountability over the resignation amid serious allegations.
“The DA has written to the chairperson of the Portfolio Committee on Higher Education and Training demanding that Minister Buti Manamela appear before the committee to account for the allegations raised in Dr Stander’s resignation letter, as well as his own intervention in the matter,” said Christians.
Manamela told Daily Maverick that a new chairperson will be appointed in due course. DM