Julius Malema, leader of the Economic Freedom Fighters (EFF), has called for a significant overhaul of the National Student Financial Aid Scheme (NSFAS). The EFF believes the current system is flawed and doesn't effectively ensure deserving students receive access to tertiary education.
NSFAS provides comprehensive bursaries and student loans to deserving students enrolled in approved courses at universities and Technical and Vocational Education and Training (TVET) colleges. The funding not only includes money for tuition and registration fees but also includes several allowances for food, accommodation and learning materials.
University students receive payments through their institutions, while TVET college students get payments directly deposited into their bank accounts. This difference in the payment system was implemented in May 2024 after issues arose with the previous system involving fintech providers.
Malema argues that the government should simplify the process by paying institutions and students directly. He believes this eliminates the need for NSFAS altogether and reduces the risk of corruption.
Why do you pay NSFAS if you want to pay for me in this TVET college? Pay the university directly. We cut out the middleman called NSFAS. Your money must go into your pockets directly.
During a recent address in eSikhawini, Malema expressed concern that NSFAS is being misused for financial gain.
We don't want NSFAS anymore. They finance the Communist Party with corrupt money from NSFAS.
NSFAS Corruption Allegations
Earlier in 2024, serious allegations of corruption surfaced regarding NSFAS. The claims centred on Higher Education Minister Blade Nzimande, former NSFAS Board Chair Ernest Khosa, and the Communist Party. The accusations involved kickbacks received for awarding lucrative contracts to fintech companies responsible for student allowance payments.
While Khosa was eventually cleared of wrongdoing, he faced disciplinary action for discussing internal NSFAS matters with unauthorised individuals. He later resigned before the NSFAS board was dissolved.
Minister Nzimande recognized the challenges within NSFAS and admitted to the scheme losing millions due to fraud and mismanagement. To address these problems, he appointed an administrator whose primary focus is ensuring timely allowance payments to students.
