The National Student Financial Aid Scheme (NSFAS) has confirmed that students at several universities will experience delays in accessing their allowances. This comes after institutions failed to submit their registration data in the stipulated time frame.
NSFAS provides comprehensive bursaries and student loans to deserving students enrolled in approved courses at public universities and Technical and Vocational Education and Training (TVET) Colleges. This NSFAS funding includes several allowances including money for meals, accommodation, transport and learning materials.
At the beginning of the 2024 academic year, NSFAS revealed it would be making upfront payments to universities and TVET colleges to facilitate the payment of allowances to students. Direct payment service providers are set to take over allowance payments a later stage in 2024.
These upfront payments are intended to cover registration fees as well as various NSFAS allowances, including book allowances for half of the academic year's cost, accommodation allowances for one month, and two months' worth of allowances for medical students, who commence their academic year earlier.
Universities received a total of R2.3 billion from NSFAS. This money is for tuition fees, allowances paid through universities, and direct payments to students.
TVET colleges received a total of R511 million, including tuition fees, allowances paid through colleges, allowances on NSFAS cards, and student accommodation costs.
Why NSFAS Allowance Payments Are Delayed
NSFAS called on universities to submit registration data by 19 March 2024 for inclusion in the following month's payments. The 25th of each month is the payment date for TVET colleges, and the 30th for universities.
It is therefore important that institutions submit their registration data to be included in the initiation of payment by the respective NSFAS cut-off dates communicated.
However, NSFAS did not receive all the registration data of students being funded in 2024. This will result in delayed NSFAS allowance payments.
NSFAS did not receive registration data from the University of Fort Hare and Stellenbosch University in time for the April payment cycle.
Several other universities also missed the deadline but will be included in future disbursements.
Lovedale TVET College, along with South West TVET college has not yet uploaded its student registration data. NSFAS is working with the college to resolve this issue.
The following TVET colleges have not met the 15th March 2024 cut-off date for the submission of registration data for the April payment. Unfortunately, this registration data did not form part of the payment file for the April payment of allowances.
NSFAS encouraged students to confirm with their institutions that their registration data has been submitted to NSFAS for timely disbursement of allowances. Failure to do this could result in delayed allowance payments.
NSFAS has initiated the registration upload period for institutions to submit the registration data for the 2024 academic year. Upon confirmation of funding and student registration for the funded/approved qualification, institutions are strongly encouraged to promptly submit their outstanding registration data for the 2024 academic year to NSFAS.
Students Demand Allowances
The South African Union of Students (SAUS) says thousands of students from various institutions have not received their allowances, ranging from living allowances to accommodation allowances.
SAUS is calling on the Department of Higher Education and Training (DHET) to intervene before the sector is plunged into a state of ungovernable
We are therefore calling on the department to immediately ensure the following lest they set up the sector for a total state of ungovernableness.
The Student union has also expressed dissatisfaction that future payment of allowances will be facilitated by direct payment service providers appointed in 2022.
This NSFAS direct payment system, introduced in 2022, involved four companies facilitating the payment of student allowances. An investigation later revealed potential conflicts of interest in their appointment, leading to the dismissal of NSFAS CEO Andile Nongogo and the termination of contracts with the service providers - a process still ongoing as NSFAS anticipates legal challenges from the companies.
We have also, along with all students across the country, rejected the distribution of allowances by these service providers who not only had been found to have been illegally appointed but further catapulted the sector into chaos last year when they consistently failed to pay student allowances on time.
The union wants all allowances to be paid to students by Friday, 12th of April 2024 are paid to and calling for the termination of contracts by service providers.
We are further calling on the department to take the nation into confidence as it pertains to the process of the termination of these illegal service providers and subsequently a viable alternative.
