The National Student Financial Aid Scheme (NSFAS) has confirmed plans to pay allowances directly to university students starting in the 2025 academic year. This significant change was announced during a meeting with key stakeholders, according to the South African Students Congress (SASCO).
NSFAS provides financial support to eligible students enrolled in universities and Technical and Vocational Education and Training (TVET) colleges. This funding covers tuition, registration fees, and essential allowances for food, accommodation, and study materials.
These allowances are not mere financial transactions; they are a lifeline for students who depend on them for their basic needs, including food, transportation, and study materials.
Delayed allowance payments have caused significant hardship for students, including food insecurity and housing challenges.
Recent months have seen a rise in student evictions due to unpaid accommodation allowances, prompting urgent intervention from NSFAS. The scheme has appealed to landlords for patience while working to clear outstanding payments.
With regard to universities, we’ve noted and have cautiously accepted a plan for the timeous payment of allowances via institutions. We somewhat begrudgingly accept this compromise as we still believe that NSFAS must completely abolish the use of all intermediaries.
To address ongoing payment issues, NSFAS has decided to terminate contracts with service providers involved in the direct allowance payment system. Legal proceedings related to this decision are currently underway.
"We have however held fruitful engagements with NSFAS, whereby they have brought us into confidence about their plans to disburse allowances more efficiently and effectively," said SASCO.
We however are delighted to report that NSFAS has in our meeting today committed that by the beginning of the 2025 academic year, all students should be receiving their allowance directly from NSFAS.
Currently, university students receive allowances through their institutions, while TVET students are paid directly by NSFAS.
This shift in payment methods aims to improve efficiency and ensure students receive their funds promptly. Timely allowances are crucial for students' well-being and academic success.
Delays in payments exacerbate the already precarious financial situations of many students, leading to increased stress and hindering their academic performance. This issue is not just a logistical failure; it is an assault on the dignity and well-being of the working-class youth.
