The National Student Financial Aid Scheme (NSFAS) has announced a significant change to its NSFAS allowance payment system. Starting from the beginning of the year and continuing until the end of 2024, universities will now be responsible for disbursing NSFAS allowances directly to students.
A circular released by the financial aid scheme read:
Following a meeting between Universities South Africa (USAF) and the NSFAS Administrator, Mr F Nomvalo, NSFAS has decided that university students' allowances will continue to be distributed through universities for the remainder of the 2024 academic year.
Previously, NSFAS contracted external service providers to manage these payments. However, following allegations of corruption and subsequent legal action, this arrangement was terminated.
NSFAS will provide universities with the necessary funds to cover student allowances, including those for food, accommodation, and learning materials.
This means NSFAS will disburse allowances to institutions, which will then distribute them to students, until the end of the 2024 academic year. The pilot accommodation process remains unchanged.
While this temporary measure is in place, NSFAS is developing a new allowance payment system scheduled for completion by September 2024.
To ensure accurate and timely payments, universities must submit up-to-date student registration information to NSFAS. NSFAS urged, "Institutions are urged to validate student data before disbursing allowances to ensure accuracy".
Nomvalo has previously said that a new student allowance mechanism for both universities and TVET Colleges will be fully developed by September 2024. Once it's developed, NSFAS will then start migrating all students from that time onwards.
Further information regarding allowance distribution channels for the 2025 academic year will be communicated later.
NSFAS said institutions must submit cancellations for the 2024 academic year by 26 July 2024. These \submissions must be sent via email to: 2024cancellations [at] nsfas.org.za (2024cancellations[at]nsfas[dot]org[dot]za)
