The National Student Financial Aid Scheme (NSFAS) has been under the spotlight due to recent challenges affecting the disbursement of NSFAS allowances. After months of uncertainty, the scheme has finally provided clarity on how students will receive their funds for August 2024.
NSFAS Direct Payment System Issues
The root of the problem lies in the NSFAS Direct Payment System, introduced in 2023 to streamline allowance payments. However, irregularities in the bidding process led to investigations and contract cancellations.
While eZaga, one of the service providers, initially won a legal battle to resume its contract, a subsequent court ruling reinstated the original decision to terminate the contract.
On 25 July, NSFAS filed an appeal against this judgement with the financial aid scheme saying:
NSFAS has been advised by its legal team that disbursements may be made in the manner arranged in the past few months.
"NSFAS endeavours to keep all stakeholders abreast with developments related to the ongoing court processes," the financial aid scheme continued.
How August NSFAS Allowances Will Be Paid
Despite the legal wrangling, NSFAS has confirmed that students will receive their allowances as follows:
- TVET College Students: Funds will be deposited directly into student bank accounts.
- University Students: Allowances will be paid through their respective institutions.
NSFAS Allowance Breakdown for August 2024
Here’s a breakdown of the allowance amounts for August:
University Students:
- Living allowance: R3,045 (personal care) + R1,345 (meals)
- Learning material allowance: Up to R455
TVET College Students:
- Living allowance: R833
- Learning material allowance: Varies by course
Other Allowances
Students with disabilities qualify for higher allowances and special provisions. A transportation allowance of up to R771 may be available for students living 10km or more from campus.
