The National Student Financial Aid Scheme (NSFAS) introduced a new direct bank deposit system in May 2024 to address previous challenges with allowance payments for TVET college students. This system will remain in place until a new one is implemented.
NSFAS provides comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges. This includes money for tuition and registration and several allowances for food, accommodation and learning materials.
Shift to Direct Payments
Previously, NSFAS relied on external service providers to distribute allowances. However, due to several challenges, NSFAS now pays TVET College students directly through its internal banking system.
To ensure timely receipt of allowances, students were encouraged to submit their banking details on the myNSFAS platform.
All NSFAS-funded TVET College students can now receive their allowances through a bank account of their choice at any bank.
When TVET College NSFAS Allowances Are Paid
NSFAS has confirmed that TVET College allowance payments will be processed on the 25th of each month. This means that students might receive their allowances on that date, although it could take a few additional days for the funds to appear in their bank accounts.
NSFAS reminds all institutions that the monthly payment date for TVET College allowances is the 25th of every month.
Benefits of the New TVET College Allowance Payment System
NSFAS administrator Freeman Nomvalo has stated that the new payment system has significantly reduced the cost of distributing allowances to students.
The previous payment mechanism was both costly and inefficient, with each transaction costing NSFAS R22 and students R10. By switching to direct payments through its internal banking system, NSFAS has reduced transaction costs to less than R1 per transfer, while also stabilizing the system and reducing student complaints.
