The National Student Financial Aid Scheme (NSFAS) has confirmed that universities will continue managing student allowances for the remainder of the 2024 academic year. This decision comes after a series of challenges faced by the scheme in handling allowance payments directly.
Why Universities Are Handling NSFAS Allowance Payments
In 2023, NSFAS contracted external service providers to disburse student allowances. However, allegations of corruption led to the termination of these contracts and subsequent legal action.
As a result, the responsibility for paying allowances was temporarily transferred to universities in April 2024.
While initially a temporary measure, the decision to extend this arrangement until the end of the year was made following discussions between NSFAS and Universities South Africa (USAF). This approach aims to ensure that students receive their financial support uninterrupted while NSFAS develops a new system for managing allowances.
Universities' Role and Responsibilities
To facilitate smooth allowance payments, universities must maintain accurate and up-to-date student registration information. NSFAS will continue to provide funding for allowances and tuition fees based on this data.
To prevent delays and errors, universities are urged to verify student details before releasing allowance funds.
NSFAS has outlined plans to implement a new system for managing allowance payments by September 2024. However, the continued involvement of universities in the process might influence this timeline.
The scheme will provide further updates on how allowances will be distributed in the 2025 academic year.
