Earlier this month, Universities South Africa (USaf) held a meeting with various stakeholders including Nsfas, the Department of Higher Education and Training to discuss the proposed changes for the disbursement of Nsfas allowances.
This follows, the bursary scheme’s announcement on plans to roll out a new direct payment solution that would see beneficiaries receiving their monthly allowances via a Nsfas bank card.
Some of the policy changes for the 2023 academic year are said to be part of the organisation's digital transformation which aims to give beneficiaries more banking freedom.
According to Nsfas, some of the benefits of the new direct payment solution include access to value added services, value for money-negotiated rates and making online purchases and transactions.
However, USaf expressed concern on whether the scheme has done enough to ensure the readiness for the bank card rollout, considering that public universities start the academic year during January and February annually
In the past, Nsfas received backlash on several accounts with regards to late payment of student allowances therefore the need for adequate preparation for the 2023 academic year was also highlighted in the discussion.
USaf chairperson, Prof Sibongile Muthwa says that the scheme assured stakeholders that it had made provision of about R3.5bn for the payment of allowances between February and April 2023 for students who will be funded.
In order to test the new payment solution, the bursary scheme has decided to pilot the direct payment of allowances to students at three universities, whilst other universities may apply to Nsfas for exemption, provided they have efficient processes and systems for disbursing allowances to student.
“Nsfas undertook to reconsider the implementation timelines in consultation with the Ministry and Department, given the identified risks associated with the proposed approach. Individual universities will be exempt if they apply to Nsfas based on specific criteria that Nsfas will communicate.”
To ensure that the new bank card system is secure and easy to use Nsfas appointed four fintech companies namely, Coinvest, eZaga, Tenet Technology and Norraco to assist with disbursement of student allowances directly into their Nsfas MasterCard.
Additionally, it was decided that high-level engagements among stakeholders are envisaged to continue bi-annually from 2023 where urgent matters could be raised and discussed by NSFAS DHET-USAF officials.