The National Student Financial Aid Scheme (NSFAS) is undergoing significant changes to address long-standing issues affecting students, according to its Administrator, Freeman Nomvalo.
Nomvalo, who took the reins in April following the dissolution of the NSFAS board, outlined the scheme’s plans during a recent media briefing. A key focus is strengthening collaboration with stakeholders to overcome hurdles faced by students.
These frameworks are critical to ensuring that decisions are sensible and prioritise the best interests of students.
Tackling TVET College Challenges
One of the most pressing concerns is the situation at Technical and Vocational Education and Training (TVET) colleges. Students have experienced persistent problems with allowance payments and accommodation allowances.
To streamline the process and reduce costs, NSFAS has implemented a new system that pays allowances directly to students through the NSFAS banker.
Each transaction previously cost NSFAS R22, and students R10. We have now reduced this cost to less than R1 per transfer.
While this has led to significant improvements, around 11,000 students have yet to provide their banking details, causing delays in payments. NSFAS is working diligently to rectify this issue.
University Students and Direct Payments
For university students, allowances are currently being paid through their respective institutions as a temporary measure to prevent fraud. Nomvalo expressed gratitude to university leadership for their cooperation and reiterated the goal of eventually making all payments directly to students.
However, a court interdict has temporarily halted the full implementation of the direct payment system. NSFAS is currently challenging this decision in court to expedite the process and ensure students receive their funds efficiently.
Nomvalo emphasized the importance of a robust government framework to support his dual role as both administrator and CEO. This will enable more effective decision-making and facilitate the necessary reforms within NSFAS.
