The National Student Financial Aid Scheme (NSFAS) has announced efforts to improve the payment of allowances to students, benefiting nearly a million students nationwide.
NSFAS Administrator Freeman Nomvalo emphasized the importance of collaboration with stakeholders to address challenges faced by students. Nomvalo, who was appointed as administrator by former Minister Blade Nzimande on Friday, 12 April 2024 following the dissolution of the NSFAS board addressed a media briefing on developments relating to administrative reform at NSFAS.
Improving NSFAS Administration and Governance
Nomvalo highlighted that his dual role as Administrator and CEO necessitates a robust governance framework to enhance decision-making processes. These frameworks are essential to ensuring decisions are sensible and prioritize the best interests of students.
Challenges at TVET Colleges
One major issue identified was the persistent problems at Technical and Vocational Education and Training (TVET) colleges, particularly regarding the non-payment of allowances and accommodation allowance challenges. The previous allowance payment mechanism was not only costly but also problematic.
The new approach has significantly stabilized the system and reduced student complaints.
Each transaction previously cost NSFAS R22, and students R10. We have now reduced this cost to less than R1 per transfer
NSFAS has decided to pay allowances directly to students using the NSFAS banker. This change has resulted in substantial cost savings and a reduction in complaints related to non-payment.
However, approximately 11,000 students have yet to submit their banking details on the myNSFAS platform, which could delay their allowance payments. Efforts are underway to ensure all students' banking details are available and verified.
Interim Measures for University Students
For university students, allowances are currently paid by their respective institutions as an interim measure. This arrangement helps mitigate fraud by ensuring that only verified students receive allowances.
Nomvalo expressed gratitude to university leadership for their patience during this temporary phase, affirming that the ultimate goal is to make all payments directly to beneficiaries.
The administrator acknowledged that a court interdict had delayed the full implementation of the new direct payment system for students. However, legal proceedings are ongoing to challenge the court’s decision and establish a more efficient and direct payment system for all students.
