The National Student Financial Aid Scheme (NSFAS) has been at the center of controversy surrounding the disbursement of student allowances. NSFAS provides financial support for tuition, registration fees, and living expenses to eligible students at public TVET colleges and universities but has faced challenges in its direct payment system.
In 2023, NSFAS contracted four service providers to manage allowance payments. However, an investigation by Werksmans Attorneys revealed irregularities in the bidding process, leading to the termination of contracts, including that of eZaga.
On 25 July, NSFAS filed an appeal against this judgement with the financial aid scheme saying:
NSFAS has been advised by its legal team that disbursements may be made in the manner arranged in the past few months.
"NSFAS endeavours to keep all stakeholders abreast with developments related to the ongoing court processes," the financial aid scheme continued.
While a court initially reinstated eZaga's contract, a subsequent ruling has added to the confusion surrounding NSFAS allowance payments.
How Will NSFAS Allowances Be Paid in August?
To clarify the situation, NSFAS has confirmed that:
- TVET college students will receive their allowances directly into their bank accounts.
- University students will receive their allowances through their respective institutions.
NSFAS Allowance Amounts for August 2024
The breakdown of NSFAS allowances for August 2024 is as follows:
University Students
- Living allowance: R16,500 annually (divided into 10 payments)
- August payment: Approximately R3,045 (including R1,345 for meals and R300 for personal care)
- Learning material allowance: Up to R5,460
TVET College Students
- Living allowance: R10,000 annually
- Learning material allowance: Varies by course
Additional Allowances
Students with disabilities qualify for higher living allowances and learning material allowances. Students living 10km or more from campus are eligible for a transportation allowance of up to R771 per month.
