As of the 2023 academic year, some National Student Financial Aid Scheme (Nsfas) beneficiaries have been receiving their allowances using the new Nsfas bank card system as part of the scheme’s digital transformation.
Speaking on the new payment method NSFAS CEO, Andile Nongogo explains that payments don’t go through institutions or third parties anymore, it goes directly to students’ account.
The bursary scheme partnered with Coinvest, Tenet Technology, eZaga and Norraca to distribute student allowances via the Nsfas Mastercard.
This bank account system has been rolled out at several TVET colleges across the country and engagements with universities to come on board have also begun.
Nsfas has affirmed that the full roll-out will occur in a phased-in approach, as they are currently engaging with universities to roll out the direct payment of allowances as well.
In the end, all NSFAS funded students should receive their allowances and transact through the NSFAS Bank Account.
Nongogo says that paying students directly gives them control over when payments are made, as well as certainty that they will be paid like with a wages or salary.
Benefits of New Bank Account System
The new Nsfas bank account system is set to bring several benefits to students and is expected to improve the efficiency, convenience, and security of financial aid disbursements to students
According to Nsfas, the bank account system will be faster and more efficient. The system will allow for faster and more efficient payment of funds to students' bank accounts, reducing the time and effort required for manual processing.
Nongogo says that because allowances are being deposited directly into students’ bank accounts, they are protected by the bank's security measures. This reduces the risk of theft or loss of funds.
Trying to move towards certainty that students will get paid on time, minimise fraudulent activity, freedom to transact themselves.
Another benefit is that it allows students to stretch money through discounts, while also promoting financial inclusion and financial literacy.
The new system also aims to reduce the administrative burden on institutions and Nsfas, allowing them to focus on providing academic support and other services to funded students.
