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.
