NSFAS was established in terms of the National Student Financial Aid Scheme (Act 56 of 1999)

The mission statement is made up of three well defined elements, which describe why NSFAS exists and its impact on the people it serves:

• NSFAS exists to provide financial aid to eligible students at public TVET colleges and public universities.
• NSFAS identifies eligible students, provides bursaries and collects past student loan repayments to replenish the funds available for future generations of students.
• NSFAS supports access to, and success in, higher education and training for students from poor and working-class families who would otherwise not be able to afford to study.