The National Student Financial Aid Scheme (NSFAS) has launched an investigation into the legitimacy of payments made to about 11,000 students who failed to provide proof that they are students at Technical and Vocational Education and Training (TVET) Colleges.
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 fees as well as several allowances for food, accommodation and learning materials.
A recent change in the allowance payment system for TVET College students prompted the scheme to request students to upload banking details on myNSFAS.. This was done so that students would receive their allowance payments directly from NSFAS.
However, 6% of students did not respond which has concerns about whether these individuals are actual students. While 6% does not sound like much, this translates to around 11,000 who will not receive allowance payments due to their failure to upload banking details.
NSFAS Administrator, Freeman Nomvalo said there are two possible scenarios which may have caused students not to upload their banking details.
The first scenario is that students have no means to reach the scheme or possibly the messages did not reach them. The second scenario may be that these students do not exist.
In the past, NSFAS has paid allowances to students who do not exist, referring to them as “Ghost Students”.
In 2023, the Special Investigating Unit revealed that NSFAS had spent R5 BIllion on inappropriate funding. This refers to funding of students who did not meet the NSFAS eligibility criteria or students who do not exist.
Efforts have been made to eradicate inappropriate funding and payment of alleged Ghost Students.
Nomvalo said that improvement in the NSFAS payment system coupled with increased verification checks for allowance payments will aid NSFAS in ensuring no payments are made to students who do not exist.
I know that there are still around 11,000 students who for whatever reason, their banking details have not been submitted and there's work that's being done to make sure that everybody's Bank details are available and of course to verify that. If other Bank details are not there, do they in fact exist?
NSFAS has expressed concern over complaints it received from students who may have not received their allowances. The scheme committed to engaging with all affected stakeholders.
NSFAS will continue to engage with institutions and students to submit their details for their allowances to be paid in the next payment run, while at the same investigating the validity and existence of these students.
The government bursary scheme will continue in its work to verify the existence of these students, while also reviewing contracts with four fintech companies involved in payment processing. Additionally, the SIU is probing corruption allegations against former NSFAS leaders.
