Earlier this year the National Student Financial Aid Scheme (Nsfas) board approved draft guidelines to be submitted to the Minister of Higher Education, Science and Innovation Blade Nzimande for approval. These draft guidelines, if approved, will impact students and how the bursary funds are managed.
Universities South Africa (USAf) recently held a meeting with Nsfas, the higher education department, representatives from several universities and the SA Union of Students (SAUS) to raise concerns about the draft guidelines.
USAf says the meeting was a solution oriented aimed at formulating joint risk mitigation strategies and ensuring that universities can register students without significant disruptions.
The draft guidelines propose that students be issued with paid-for bank cards by Nsfas. This will enable the scheme to pay allowances directly to students. Nsfas believes that this will also give students more control over their money.
USAf is concerned at the timing of the payments and the readiness of Nsfas to begin the implementation of the direct payment solution. The concerns stem from previous years in which students were not paid their allowances due to delays from the financial aid scheme.
Nsfas assured meeting attendees that allowances will be paid during the first few months of the 2023 academic year. The scheme made provision, estimated at R3,5 billion for the payment of allowances for all Nsfas-supported students in the system between February and April 2023.
The financial aid scheme also agreed to pilot the direct payment of allowances to students at three universities. Other institutions may apply to Nsfas for exemption. This exception may be on the condition that they have efficient processes and systems for disbursing allowances to students.
The guidelines further reveal plans for the financial capping of accommodation allowances, and an envisaged plan by Nsfas to accredit student accommodation without the assistance of universities.
Nsfas also plans to grade, cost and cap the cost of student accommodation, enter lease negotiations on behalf of students and pay landlords directly. They assured stakeholders that university residences will be prioritised.
When Nsfas is ready to take over these processes, it will issue a three-month notice to universities probably before the end of 2023
The scheme also requested universities to partner Nsfas in the accreditation of private residences. However, they acknowledged that rurally based campuses may need to maintain their current student accommodation approaches which respond to their unique contexts.
USAf are concerned with Nsfas proposal to cap the student accommodation allowance of R45,000. They warn that empirical data should be used to underpin the capped student accommodation allowances to ensure students have access to suitable accommodation while obtaining their qualifications.
Nsfas have agreed to reconsider the timelines in consultation with the Ministry and Department, given the identified risks associated with the proposed approach. The policy has not yet been approved by the minister, however, Nsfas has issued multiple media statements announcing the launch of the Nsfas Mastercard payment solution.
