Nzimande Reveals Strategy To Resolve NSFAS Challenges


Please share this article

Advertisement


Thousands of students were defunded by NSFAS in 2023 putting them at risk of several challenges. The higher education minister revealed what is being done to address the challenges being experienced by students. 


Advertisement i


Higher Education Minister Blade Nzimande has shed light on the steps taken to address various challenges related to the National Student Financial Aid Scheme (NSFAS). The implementation of several new policies by NSFAS has been a cause for concern for many students and has led to protests at various campuses around South Africa.

NSFAS funds more than one million students currently enrolled in approved programs at universities and Technical and Vocational Education and Training (TVET) Colleges. These students are provided with comprehensive bursaries that aim to cover all aspects of their studies.

This comprehensive bursary includes money for tuition and registration fees, as well as allowances for food, accommodation, and stationery.

However, it was recently revealed that tens of thousands of students were defunded by NSFAS. This meant that they would become liable for all the costs of their studies. Additionally, being defunded also puts students at risk of hunger and homelessness as they no longer have access to an NSFAS accommodation allowance or a meal allowance.

A member of parliament recently questioned Nzimande about the reasons behind the defunding of thousands of students and the reasons for service provider charges.

Engaging Students

Nzimande explained that NSFAS took swift actions by delegating two teams led by senior officials. These teams were sent to a sample of 10 universities and 20 TVET colleges.

The ten-day visit sought to engage with students and institutions directly, aiming to understand the challenges they are currently facing. NSFAS also initiated ongoing dialogues with student leaders in areas where the issues continue to persist.

Reasons for Defunding

Due to the serious consequences of defunding students, NSFAS clarified the reasons why thousands of students lost their NSFAS bursaries. According to NSFAS, the number of students who were defunded totaled 28,378 since the start of 2023.

NSFAS explained that applications were rejected for various reasons, including cases where applicants no longer meet the financial eligibility criteria due to the use of newly updated South African Revenue Service (SARS) data.

Another common cause of rejection is the updating of Academic Eligibility (AE) assessment results, which can impact a student's eligibility for financial aid. Additionally, applicants may find their funding revoked if they exceed the N+ rule, which sets limits on the number of years a student can receive NSFAS funding.

NSFAS Direct Allowance Payment Challenges

As of 2023, NSFAS-funded students (with the exception of disabled students) began receiving their allowances via a direct allowance payment system. The system was facilitated by four service providers, namely eZaga, Coinvest, Norocco, and Tenetech.

However, the implementation of the direct payment system has been hindered by several challenges.

NSFAS initially stated that students would only be charged R12 per month for using their NSFAS bank account. However, this has not been the case. In addition to the R12 bank fee, students have complained about exorbitant charges they have incurred as they transact with their allowance money.

Nzimande explained that additional charges may be incurred due to student transactional behavior for actions outside of the bundled transactions. This could include repeated views of the balance of funds in the student account or excessive transactions, which may contribute to additional fees.

An investigation into the contract for the direct payment of allowances has revealed several irregularities and led to the removal of NSFAS CEO Andile Nongogo.

Suggested Article:

NSFAS revealing findings of investigation

The Universities South Africa have welcomed the actions taken by NSFAS following a recent corruption investigation. The investigation revealed potential conflicts of interest and irregularities in the appointment of these service providers.
 


Advertisement



Google preferred source
Do you want to get priority access to the articles about Learnerships, internships, bursaries and so much more on the Careers Portal website?
Then click here to make Careers Portal a Preferred Source.




Advertisement

Post-Matric Options

 

We helped you with past papers for your matric exams, so hopefully you are happy with your Matric results. So now you are faced with a lot of post-matric options that can shape your future paths. You might want to study law, teaching, or nursing. Of course studying is expensive so we have helpful advice about student loans, NSFAS bursaries, Fundi loans, ISFAP, and lots of other funding options.

These options range from pursuing higher education at universities , TVET Colleges or  private colleges, finding student accommodation, entering vocational training programs (like Learnerships and internships), joining the workforce, or even starting your own business. There are so many choices but we are here to help.

 


 

Advertisement


Latest SASSA articles

Where to Study


Advertisement m


Other Opportunities

Momentum Health is looking for young people to join their Learnership programmes. If you are keen to get into the health insurance sector, then this could be perfect for you. 

 

Clicks are recruiting now for 12 different internship programmes open at their branches across the country to work in their pharmacies. 


Advertisement


General News

Applying for your Smart ID Card has gotten even easier as you can now apply online via e-Home Affairs. Here is how to apply, upload documents and pay for your application all from the comfort of your own home.

Careers Advice

Influencing has become a popular career choice, especially among young adults, but it is not always as simple or straight-forward as it may seem. Here is everything being an influencer may entail.


Advertisement i


Sponsored Ad


Copyright: Portal Online Publishing (Pty)Ltd | Privacy Policy | Terms of Use
Skills Portal | Careers Portal | Jobs Portal | Bursaries Portal | Skills Universe
About us | Contact us
Portal PublishingPress Council