The National Student Financial Aid Scheme (NSFAS) has announced a major shift in allowance disbursement for the 2025 academic year.
NSFAS is a lifeline for many deserving students enrolled in approved courses at universities and TVET colleges. It provides comprehensive financial aid, covering tuition and registration fees alongside essential living allowances for food, accommodation, and learning materials.
These allowances are not mere financial transactions; they are a lifeline for students who depend on them for their basic needs, including food, transportation, and study materials.
"We have however held fruitful engagements with NSFAS, whereby they have brought us into confidence about their plans to disburse allowances more efficiently and effectively."
Direct Allowance Payments for University Students
According to the South African Union of Students (SAUS), NSFAS will now pay allowances directly to university students in 2025. This decision, revealed during a stakeholder meeting, has been welcomed by the student union.
We however are delighted to report that NSFAS has in our meeting today committed that by the beginning of the 2025 academic year, all students should be receiving their allowance directly from NSFAS.
The importance of timely allowance payments cannot be overstated. Delays in the past have resulted in student hunger and even potential evictions due to unpaid accommodation fees.
Recent challenges with processing accommodation allowances have put students at risk of losing their housing. In extreme cases, NSFAS has had to intervene with landlords to prevent evictions and ensure outstanding allowances are paid.
Delays in payments exacerbate the already precarious financial situations of many students, leading to increased stress and hindering their academic performance. This issue is not just a logistical failure; it is an assault on the dignity and well-being of the working-class youth.
The new direct payment system aims to streamline the process and ensure faster disbursement of allowances to university students. TVET college students will continue to receive their allowances directly into their bank accounts from NSFAS.
This change follows NSFAS's decision to terminate contracts with service providers involved in the previous Direct NSFAS allowance payment system, subject to ongoing legal proceedings.
"With regard to universities, we’ve noted and have cautiously accepted a plan for the timeous payment of allowances via institutions. We somewhat begrudgingly accept this compromise as we still believe that NSFAS must completely abolish the use of all intermediaries," said SAUS.
