Higher Education Minister Naledi Pandor will appoint an administrator to oversee the National Student Financial Aid Scheme following the resignation of Sizwe Nxasana.
His exit comes in the midst of drama around the allocation of student allowances and payment backlogs from 2017 and 2018.
Trade union Nehawu says it red-flagged Nxasana’s appointment back in 2015 because of his personal business interests.
Nehawu claims he is running a parallel funding scheme that targets students from the missing middle.
The Higher Education Department has dismissed Nehawu’s claims.
Pandor met with the NSFAS board on Friday.