The National Student Financial Aid Scheme (NSFAS) provides comprehensive financial aid to deserving students enrolled at public TVET colleges and universities. This includes covering tuition and registration fees, as well as providing allowances for essential expenses like food, accommodation, and learning materials.
However, with recent challenges at NSFAS, students have been confused when it came to how they would be receiving their NSFAS allowance payments. With this in mind, NSFAS recently released a statement granting some clarification.
NSFAS Direct Payment System Challenges
In 2023, NSFAS hired four service providers to facilitate the payment of allowances to students using the NSFAS Direct Payment System. However, an investigation by Werksmans Attorneys uncovered potential irregularities in the Bid, which awarded contracts for the NSFAS direct payment system.
These findings led Werksmans to recommend terminating the contracts, with eZaga being one of the service providers with a cancelled contract.
In June, NSFAS was given the green light to implement the recommendations of the Werksmans report after the Western Cape High Court dismissed a request by eZaga Holdings to block its implementation. However, the same court handed down a judgement on Monday which in theory restored eZaga’s contract to distribute student allowances.
On 25 July, NSFAS filed an appeal against this judgement with the financial aid scheme saying:
NSFAS has been advised by its legal team that disbursements may be made in the manner arranged in the past few months.
"NSFAS endeavours to keep all stakeholders abreast with developments related to the ongoing court processes," the financial aid scheme continued.
NSFAS Allowance Payments For August
In the statement, NSFAS makes it clear that allowances will be paid "through the institutions for university students and directly into TVET College student bank accounts".
In August, students at TVET Colleges can expect to receive their allowances directly in their bank accounts and university students will be paid through their institutions.
How Much NSFAS Allowance Payments Are For August 2024
University students
- Living allowance: R16,500 annually (R3,045 for personal care + R13,455 for meals)
- Learning material allowance: Up to R5,460
TVET college students
- Living allowance: R10,000 annually
- Learning material allowance: Varies depending on the course
Other NSFAS Allowances
Special provisions are made for students with disabilities, who receive higher living allowances and a learning materials allowance. Certain conditions apply.
NSFAS meal and personal care allowances are divided into 10 payments. This means that in August, students will receive:
- Meal allowance: R1,345
- Personal care allowance: Approximately R300 (for students in catered accommodation)
If students live 10 km away from campus, they are eligible for a transportation allowance of R7,718 annually, which means students receive a monthly travel allowance of up to R771. This allowance is given directly to the student unless the institution arranges travel.
