On Monday 28 November 2022, the Boards of Directors of Universities South Africa (USAf), NSFAS, the Department of Higher Education and Training (DHET), the Ministry of Higher Education, Science and Innovation, and the South African Union of Students (SAUS) met at Birchwood Conference Center in Boksburg, Ekurhuleni.
The meeting was held following a request by Universities South Africa (USAf) after they raised numerous concerns to both the DHET and NSFAS regarding proposed changes on the direct disbursement of NSFAS funds to students.
The discussion brought attention to the necessity of thorough planning for the 2023 academic year and of carefully managing the extensive proposed NSFAS policy changes incrementally with all stakeholders to achieve minimal disruptions across the university sector.
The issuing of student-paid-for banking cards and services (that are currently free) as well as contesting proposed financial capping of accommodation allowances, and an envisaged plan by NSFAS to accredit student housing without the assistance of universities also formed part of the discussions.
Thus, to ensure that universities can enrol new and returning students without experiencing major interruptions, USAf advanced its position on developing cooperative risk mitigation techniques.
The NSFAS Board adopted the aforementioned policy amendments, which are included in the 2023 NSFAS Draft Guidelines that have been submitted to the Minister of Higher Education, Blade Nzimande for approval.
The timing of the payments (and NSFAS preparedness) for the direct payment of allowances to students by NSFAS was a major concern for this strategy, given that public universities begin the academic year in January and February each year.
Universities used to advance student allowances out of their funds since NSFAS was late. Vice-Chancellors were reassured by NSFAS that allowance payments, estimated at R3.5 billion for all NSFAS-supported students enrolled in the system between February and April 2023 had been made.
Furthermore, NSFAS decided during discussions that they will test the direct allowance payment system at three universities. Other universities may submit an application to NSFAS for exemption if they have effective methods and procedures in place for paying out allowances to students.
