The National Student Financial Aid Scheme (NSFAS) in South Africa shows that a significant majority of its beneficiaries, approximately 80%, are first-year students. In 2024, among the 917,092 students supported by NSFAS, 780,125 are first-year students, leaving around 130,000 continuing from the prior year. This statistic underscores the difficulty many students face in transitioning beyond their first year of university education.

Several factors contribute to the dropout rate of first-year NSFAS students. Many students leave due to personal issues or because they do not meet the academic requirements to continue receiving funding. For NSFAS support, students must achieve a 60% pass rate in their university courses, and those in Technical and Vocational Education and Training (TVET) must pass a specific number of subjects. The pressure to maintain academic standards is a significant hurdle for new students, which can lead to many not continuing their studies beyond the initial year.

Moreover, as students progress, some may secure alternative funding through bursaries, making them ineligible for NSFAS support. This suggests that while NSFAS is crucial for first-year entrants, there's a need to address the reasons behind the high dropout rate and explore solutions that can help maintain financial support for students throughout their education journey. Consequently, the findings raise concerns about the sustainability of student support within the South African higher education landscape.