The National Student Financial Aid Scheme (NSFAS) is notorious for having a myriad of problems that arise and persist each year.
While the bursary scheme and the Department of Higher Education and Training (DHET) have outwardly expressed that they are aware of the problems and are working to solve each one, each year is a challenge for students that are beneficiaries of NSFAS.
Every year, student-led protests erupt across campuses as a result of NSFAS and it’s inability to co-ordinate with universities. This year was no different, with protests still ongoing at the moment.
In 2017, an issue arose surrounding delays in processing applications. According to NSFAS Spokesperson, Slumezi Skosana, the Minister of Higher Education, Blade Nzimande, brought in an administrator who sorted out a number of problems.
Later, in 2021, a NSFAS board and a CEO was brought on, which made a considerable impact and improved how the scheme was running, says Skosana.
However, Rudie Heyneke, from the Organisation Undoing Tax Abuse (OUTA) disagrees with Skosana, stating that he doesn't think NSFAS is doing better in terms of maladministration.
OUTA recently published its findings from an investigation into NSFAS, accusing the bursary scheme of mismanaging millions of Rands in funding.
NSFAS recently came under fire for the discovery of wrongly allocated funds to students who were not meant to qualify for financial aid, coming to the value of around R5 billion.
This kind of collusion is frustrating, as delays in students receiving their allowances when the academic year begins is one particular issue that persists each year. Until their allowances kick in, students cannot register, pay tuition, secure accommodation and pay for groceries, learning materials and transport costs.
At the beginning of this academic year, it was assumed that NSFAS did not pay universities (as per the allowance distribution arrangement in place), and that’s why students were not paid “which was not the case and is the issue now which is still recurring”, says Skosana.
The arrangement is that NSFAS pays tertiary institutions, and then it becomes the universities’ responsibility to distribute the NSFAS allowances to students. When this doesn’t happen, NSFAS does not know the reason why, as they did their part, explained Skosana.
Students say the delay in issuing universities with the list of funded students is what is causing the delay in paying allowances; universities need the list to know which students to pay.
Asive Dlanjwa, from the South African Union of Students (SAUS), also joined the conversation, stating that the issue lies with the disbursement of funds, even though the money has been made available, adding that it has happened in the past where NSFAS was ready to distribute it funds, but couldn't, due to a shortfall.
This shows that it’s not necessarily a lack of funding, but rather [miscoordination] between NSFAS and institutions.
This then creates a problem because NSFAS said that funding decisions would be delayed, but at the same time, institutions are closing their registration periods.
Between NSFAS and the institutions, through the leadership of the Department, they should have already coordinated and ensured that there’s a coherence in terms of their systems.
This is what causes protests, explained Dlanjwa, saying that students don’t have money for their survival, but the funds are there.
With NSFAS, it’s almost like they don't have the capacity to deliver on the mandate that they have [promised].
To resolve some of the issues surrounding funds disbursement, NSFAS has made the decision to introduce Bank Cards and Bank Accounts for student beneficiaries.
These new methods will be used for the purpose of directly depositing student allowances in an easily accessible Bank Account, which will hopefully eliminate the (often delayed) middle-man that is tertiary institutions.
To that, Skosana said:
There is a misalignment between the commencement of the academic year, as well as the time when we actually get our [funds] allocation as NSFAS...At the beginning of the year, students are already on campus and at [that] point, we would not have received our first tranche, which comes in April of every year.
NSFAS also regularly adjusts its eligibility requirements, which continues to exclude more students from accessing tertiary education without the help of financial aid.
The bursary scheme already excludes the missing middle, postgraduate students from 2021, and now, students in a course with less than 60 credits will no longer qualify, much to the frustration of South Africa's student population that are reliant on NSFAS to continue funding their studies.
These adjustments leave thousands of students stranded, as they obviously couldn't afford higher education on their own, while in the middle of their studies or just about to graduate.
Students who were hoping to attend a university or college in the future now no longer that have opportunity.
