The National Student Financial Aid Scheme (NSFAS) introduced a new direct bank deposit system to address past challenges with allowance payments for TVET college students. This system was introduced in May 2024 and will continue until a new system is put in place.
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 and several allowances for food, accommodation and learning materials.
Previously, NSFAS relied on service providers to distribute allowances to students. However, several challenges prompted NSFAS to pay TVET College students their allowances directly using the NSFAS banker.
Students were encouraged to submit their banking details on the myNSFAS platform to ensure they received their allowances on time.
All TVET College Students Funded by NSFAS can receive their allowances through a bank account of their choice with any bank.
When TVET College NSFAS Allowances Are Paid
NSFAS confirmed that all TVET College allowance payments will be paid on the 25th of each month. This could mean that students receive their allowance on the 25th day of the month or have to wait a few days before the money is reflected in their bank accounts.
NSFAS would like to remind all institutions that the monthly payment date for TVET college allowances is the 25th of every month.
Benefits Of New TVET College Allowance Payment Systems
NSFAS administrator Freeman Nomvalo revealed that the new payment system has dramatically reduced the costs of paying allowances to students.
The previous allowance payment mechanism was not only costly but also problematic. Each transaction previously cost NSFAS R22, and students R10.
Since NSFAS decided to pay allowances directly to students using its internal banker, the scheme reduced cost to less than R1 per transfer while significantly stabilising the system and reducing student complaints.
