Great news for TVET College students! The National Student Financial Aid Scheme (NSFAS) is finally ditching the unpopular "fintech providers" and moving to direct bank account deposits for student allowances.
What Happened with Fintech Providers?
Remember the controversy surrounding those companies hired to manage student allowances last year? You're not alone. The decision to use these fintech providers caused a stir, ultimately contributing to the dismissal of both the NSFAS CEO in 2023 and the entire NSFAS Board earlier this month.
Investigations revealed irregularities in the selection process, leading to their cancellation.
Here's What's Changing
Starting in May, NSFAS will pay allowances directly into students' bank accounts, eliminating the need for fintech providers altogether. This means a smoother and more reliable system for TVET College students.
NSFAS has devised a payment mechanism to address these ongoing challenges with the assistance of its banker which will be implemented for the payments that are due at the end of May 2024.
April NSFAS allowances, if not already received, should still be delivered through the previous system.
In terms of the mechanism, NSFAS will distribute allowances directly to student's bank accounts.
What TVET College Students Need to Do
- Open a Bank Account (if you don't have one): NSFAS encourages all TVET students without a bank account to open one at any South African bank.
- Update Your MyNSFAS Account: Once you have a bank account, log in to your MyNSFAS account and register your new bank details.
All TVET students who do not have bank accounts are encouraged to open bank accounts with banks of their own choice. The scheme will communicate to all NSFAS beneficiaries requesting them to update their details to enable the smooth implementation of this direct payment mechanism.
For now, this direct deposit system only applies to TVET College students. University students will continue receiving allowances through their universities until at least July 2024.
