The National Student Financial Aid Scheme (Nsfas) provides comprehensive bursaries to more than 900,000 students in South Africa. However, there are several challenges continuing to plague students which Nsfas will seek to address in the coming months.
Nsfas bursaries are comprehensive, as it pays a funded student’s tuition and accommodation fees. Funded students also receive a transport, meal and stationery allowance. To get these allowances, students are required to provide Nsfas with contact details and personal information.
However, when providing their personal information and contact details, some became targets of fraud due to the many unlawful ways unscrupulous individuals access and use this information.
Nsfas identified several key challenges and the risks associated with the current payment solutions they use. They are…
- Unauthorised access to beneficiary alliance, Beneficiary information was solicited by fraudsters through social engineering, malicious websites and social media pages
- Insufficient cyber security on the Celbux platform resulting in exposed beneficiary day and theft of allowances.
- Lack of physical verification leading to possible payment to fictitious/ghost beneficiaries, incorrect payments and possible duplicate payments
- The information of beneficiaries is being easily accessible to agents handling allowance related queries, both at Nsfas and institutions meant that incidences and possibilities of theft increased.
In an effort to mitigate the risks posed by the current payment solutions, Nsfas has sought to streamline the process of allowance payments. This will be achieved through the use of a direct payment solution that will result in students being paid allowances directly from Nsfas.
Nsfas believes this solution will also enable the financial aid scheme to ensure that students are paid on time by eliminating its dependence on third parties to render services.
Related Article: How To Login to The NyNsfas Student Portal
“The current estimated number of Nsfas beneficiaries is 900,000. The scheme wanted a solution that will appropriately cater for the constantly rising number of beneficiaries and increased amount of funds being disbursed,” explained Nsfas.
The financial aid scheme believes that this direct payment solution will also allow them to monitor how beneficiaries utilise their funds and identify trends that require financial awareness initiatives.
Nsfas adds that they also want to contribute to students’ financial literacy by providing a solution that enables them to transact in a manner that promotes financial responsibility.
The scheme enlisted the assistance of four service providers in the financial services and fintech sector through supply chain to assist them with the direct disbursement of allowances into the bank accounts of students.
These service providers will provide students with a bank account for the funds to be paid into.
