The National Student Financial Aid Scheme (NSFAS) introduced a new direct bank deposit system in May 2024 to address previous issues with allowance payments for TVET college students. This system will remain in place until a new payment method is implemented.
NSFAS provides comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges. This includes money for tuition and registration and several allowances for food, accommodation and learning materials.
Previously, NSFAS relied on service providers to distribute allowances to students, but due to various challenges, the scheme decided to pay TVET College students directly via the NSFAS banker.
Students were encouraged to submit their banking details on the myNSFAS platform to ensure timely receipt of their allowances.
All NSFAS-funded TVET College students can now receive their allowances through a bank account of their choice at any bank.
When TVET College NSFAS Allowances Are Paid
NSFAS has confirmed that TVET College allowance payments will be processed on the 25th of each month. While students may receive their allowance on that day, it may take a few additional days for the funds to reflect in their bank accounts.
NSFAS reminds all institutions that the monthly payment date for TVET College allowances is the 25th of every month.
Benefits of the New TVET College Allowance Payment System
NSFAS administrator Freeman Nomvalo reported that the new payment system has significantly reduced the cost of disbursing allowances to students.
The previous payment mechanism was both costly and inefficient, with each transaction costing NSFAS R22 and students R10. By switching to direct payments through its internal banking system, NSFAS has reduced transaction costs to less than R1 per transfer, while also stabilizing the system and reducing student complaints.
