Millions of students rely on the National Student Financial Aid Scheme (NSFAS) for their tertiary education. This NSFAS funding includes NSFAS allowance payments to cover their educational costs, so these changes have had a significant impact on their lives.
NSFAS has said that they have made significant strides in improving the administration of student allowance payments, ensuring timely and efficient disbursements to deserving learners across South Africa.
In recent years, challenges with allowance payments had hampered NSFAS's ability to effectively support students. However, under the leadership of Minister Dr Nobuhle Nkabane and NSFAS administrator Freeman Nomvalo, the scheme has implemented several reforms to address these issues.
This has caused unnecessary stress for students and their families and continues to pose a threat to the stability of some TVET colleges and universities.
One of the key improvements has been the transition to a new allowance payment method. Previously, NSFAS directly disbursed funds to students.
However, the scheme has now empowered universities and TVET colleges to handle these payments, leading to greater efficiency and accountability.
Since the implementation of this new system, students have reported a significant reduction in delays and challenges related to allowance payments. This has allowed them to focus on their studies without the added stress of financial uncertainty.
Regarding student allowances, the committee may recall that at the start of the year, particularly around April and early May, many students—especially in colleges and universities—experienced delays in receiving their allowances.
Furthermore, NSFAS has introduced a direct deposit system for TVET college students, enabling them to receive their allowances directly into their personal bank accounts. This has provided students with greater flexibility and convenience in managing their finances.
TVET college students were still facing issues—either not receiving their allowances or losing them due to various challenges. This created significant instability, leading to threats of mass action by students.
"To address this, we implemented an interim measure through our current banker, paying students directly," said Nomvalo.
Since then, there have been no reported instances of students not receiving their allowances, to our knowledge. Moreover, this approach has proven to be cost-efficient. While we intend to extend this process throughout the sector, we are currently unable to do so due to a legal challenge related to the cancellation of the existing contract.
These reforms are a testament to NSFAS's commitment to providing equitable access to higher education for all South African students. By improving the efficiency and transparency of allowance payments, the scheme is ensuring that students can focus on their academic pursuits without undue financial hardship.
