The Nation Student Financial Aid Scheme (NSFAS) will accelerate the process of distributing allowances to students who have not yet been paid. This comes after a University said the majority of the NSFAS-funded students have not yet received their allowances for June 2023.
NSFAS explained that the delays in allowance payment come as the result of universities not releasing the registration data of students. The financial aid scheme must first verify that students are registered at a university before they can begin the distribution of allowances.
The speed and comprehensive release of funding depend in part on relevant and applicable student registration data being timeously availed to the organisation.
NSFAS also disputed the number of students enrolled at the University of Witwatersrand (WITS) who did not receive their allowance. It was suggested that more than 8,000 of the 9,950 students enrolled at WITS have not received their 14 July 2023 allowance.
The financial aid scheme says according to its data, more than 7,600 WITS students were paid their allowances in June.
Our figures are that 7,684 student allowances were paid on 14 July 2023, in addition to the cohort paid during the end of [the] June payment run.
NSFAS is committed to continued engagement with institutions to address all obstacles that are preventing the distribution of allowances to students. They said they are aware of the need to minimise delays in allowance payment due to the strain it may put on the emotional well-being of vulnerable students.
It is our highest priority, therefore, to maintain the momentum of disbursing approved funding swiftly, accurately and in accordance with our governance systems and principles.
NSFAS Defends Direct Payment System
In 2022, NSFAS announced it would be paying allowances directly to students. This direct payment of allowances would be facilitated by financial technology service providers.
It has been suggested that the introduction of a new allowance payment system has led to delays in students receiving their allowances.
The direct allowances payment system was first implemented at Technical and Vocational Education and Training (TVET) colleges in 2022 and was finally extended to include university students in 2023.
In May 2023 NSFAS-funded University students around the country were instructed to onboard themselves onto the system to begin receiving their allowances directly from June 2023.
Since the introduction of the direct payment system, students have complained about exorbitant bank charges and the inability to access their allowances.
We understand and accept that changes create uncertainty and some levels of discomfort but commit to a consultative and transparent change management process, in handling necessary and critical changes that might not always be fully embraced in their early phases of deployment and system testing.
NSFAS is calling on stakeholders not to be disheartened by or impatient with “teething problems” that arise with the introduction of a system. The aim of the new system is to use automotive technological solutions that serve students on time and at scale.
