Nsfas pushes to pay 75% of valid beneficiaries to clear mess

The National Student Financial Aid Scheme (Nsfas) has made significant progress in addressing funding problems ahead of the resumption of the academic year, it announced.

Nsfas announced it had paid out allowances to 75% of its beneficiaries whose registration was successfully validated.

“We are urging universities to fast-track the submission of registration data to ensure that all beneficiaries are paid on the next payment date, scheduled for July 31,” said Nsfas spokesperson Slumezi Skosana.

The scheme has committed itself to dispatch, within a week of universities reopening, capable teams to help with the swift onboarding of students and issuing of bank cards.

Funding problems emerged during a Special Investigative Unit (SIU) probe into Nsfas three months ago.

The probe revealed that the scheme paid out over R5-billion, from 2018 to 2021 to students that were ineligible for bursaries.

As a result payments to students previously approved for funding, and had received monthly allowances since the beginning of the year, stopped in May.

This led to protests concerning unpaid allowances, accommodation, registration as well as safety and security. Some students even lost their spots at residences.

According to Skosana, the scheme engaged with student bodies to address the problems after consulting with the Auditor General and conducting internal compliance processes to resolve the issue considering the SIU’s findings.

Skosana said that Nsfas then initiated a remedial process in which students were found to have been defunded based on incorrect information.

Following the meeting with the South African Union of Students (Saus) and direct payment partners in Cape Town, Nsfas committed to communicating the necessary steps to all students affected by the recent defunding process.

Saus then expressed concern that some universities were intentionally withholding registration data for Nsfas students.

Skosana said that the scheme urged all institutions to fast-track the submission of 25% of the registration data to ensure that beneficiaries are paid.

In recent weeks, Nsfas had intensified its efforts to engage meaningfully with universities, TVET colleges and student organisations “to ensure that the servicing of Nsfas beneficiaries remains consistently reliable and well-coordinate”.

“In that regard, Nsfas is also acknowledging that the new payment system may present unforeseen challenges. It emphasises its commitment to be directly accountable for student allowance payments.

“The scheme recognises the need to improve the user-friendliness of the payment system and pledges to deploy additional staff to assist students with enrolment and receiving their allowances promptly,” Skosana added.

Nsfas and Saus also agreed to work on enhancing the usability of the payment system, making it quick and standardised for all Nsfas beneficiaries.

“Efforts are being made to remove functional restrictions on bank cards, allowing students to utilise them like any other bank card,” said Skosana.

Saus said after several meetings with Nsfas and the education department, it was concerned that some universities intentionally withheld the registration data of Nsfas students.

Saus said the failure of these institutions to submit the data within the next 72 hours, will lead to it taking appropriate action against them and reporting them to the parliamentary portfolio committee.

Nsfas said it will investigate complaints and any substantiated allegation will be addressed accordingly.

“Service providers will be instructed to increase their physical presence at higher learning institutions,” Skosana concluded.

Nsfas pushes to pay 75% of valid beneficiaries to clear mess

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