The National Student Financial Aid Scheme (NSFAS) Administrator, Freeman Nomvalo, emphasised the importance of collaboration with stakeholders in addressing challenges faced by students.
Nomvalo, who was appointed as administrator by former Minister Blade Nzimande on Friday, 12 April 2024 following the dissolution of the NSFAS board addressed a media briefing on developments relating to administrative reform at NSFAS.
Improving NSFAS Administration And Governance
Nomvalo underscored that having a unified role as both Administrator and CEO requires a robust government framework to enhance decision-making processes.
These frameworks are critical to ensuring that decisions are sensible and prioritise the best interests of students.
Challenges at TVET Colleges
One major issue highlighted was the persistent problems at Technical and Vocational Education and Training (TVET) colleges, particularly concerning the non-payment of allowances and accommodation allowance challenges.
The previous allowance payment mechanism was not only costly but also problematic. The new approach has significantly stabilised the system and reduced student complaints.
Each transaction previously cost NSFAS R22, and students R10. We have now reduced this cost to less than R1 per transfer,
Nomvalo noted that NSFAS has decided to pay allowances directly to students using the NSFAS banker. While this change has resulted in substantial cost savings, it has also led to a reduction in complaints related to non-payment.
However, approximately 11,000 students have yet to submit their banking details on the myNSFAS platform, which could delay their allowance payments. Efforts are underway to ensure all students' banking details are available and verified.
Interim Measures for University Students
For university students, allowances are currently paid by their respective institutions as an interim measure. This arrangement helps mitigate fraud by ensuring that only verified students receive allowances.
Nomvalo expressed gratitude to university leadership for their patience during this temporary phase, affirming that the ultimate goal is to make all payments directly to beneficiaries.
The administrator acknowledged that a court interdict had delayed the full implementation of the new direct payment system for students. However, legal proceedings are ongoing to challenge the court’s decision, to establish a more efficient and direct payment system for all students.
