The National Student Financial Aid Scheme (NSFAS) has recently found themselves in hot water over delayed NSFAS allowance payments, amongst other things. Now, members of Parliament have started questioning the financial aid scheme.
One of the challenges seen at higher education institutions is concerning the new direct payment system.
What is NSFAS' new direct payment system?
In 2022, NSFAS introduced a direct payment system for NSFAS allowances. This was done to give students the confidence that allowances will be paid and done so in good time. All students had to do was register for the NSFAS bank account.
NSFAS partnered with four service providers to facilitate the direct payment of student allowances. The system was first introduced at TVET colleges and since July 2023, students at universities began using the direct payment system.
However, several challenges have arisen since the system has been introduced. This includes students experiencing difficulties registering for the NSFAS bank account, exorbitant bank charges and in some cases, non-payment of allowances.
What's being done about these challenges?
One of the strategies NSFAS has put in place is to deploy teams to institutions to assist with onboarding students and accessing their NSFAS allowances. Answering a question from a Parliament Committee member, the Higher Education Department, said:
Most recently the NSFAS Team was deployed to TVET colleges for the purposes of assisting with challenges, including direct payments, from Monday 18 September 2023 to Friday 22 September 2023.
Previously, the NSFAS team conducted working visits to TVET Colleges from 16 January 2023 to 17 February 2023. This was to assist students with the new direct payments process during the student registration period.
As for universities, NSFAS was "working with the direct payment partner began by actively collaborating with institutions and the Student Representative Council (SRC) to define the procedural steps and address any queries or concerns they might have had".
During July and August, NSFAS team members were stationed at universities to help onboard students.
The Department further said:
Continuing in its commitment to streamline the payment process, NSFAS, in conjunction with its direct payment partners, maintains ongoing engagement with institution management and the SRCs. This proactive approach ensures that any identified issues are promptly addressed.
NSFAS is said to be working to make sure outstanding matters are resolved by NSFAS and the direct payment partners.
Questions have also been raised about the Fintech companies approved to pay NSFAS allowances to students. Members of parliament voiced their concern about the inability of the Fintech companies to distribute allowances to students and allegations of some of them having not met the minimum requirements to be appointed.
