NSFAS blamed for leaving poor students scrambling again

NSFAS has remained mum over delays in student allowances at some institutions after the direct payment mandate has returned to the four controversial fin-tech service providers. Picture: Ayanda Ndamane/Independent Newspapers

NSFAS has remained mum over delays in student allowances at some institutions after the direct payment mandate has returned to the four controversial fin-tech service providers. Picture: Ayanda Ndamane/Independent Newspapers

Published Apr 9, 2024

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The National Student Financial Aid Scheme (NSFAS) has remained mum over delays in student allowances at some institutions after the direct payment mandate has returned to the four controversial fin-tech service providers.

Universities had temporarily taken over the responsibility of facilitating the payment of allowances for February and March. According to the entity, this was due to challenges experienced at the beginning of the academic year which led to delays in receiving registration data from the institutions.

As of April 1, fin-tech companies eZaga Holdings, Tenet Technology, Noracco Corporation and Coinvest Africa resumed administration services as they are still contracted with NSFAS.

Last month, the entity had explained that there was a legal process of terminating the contracts and it was also still looking for a long-term solution of how the direct payment system could continue after the companies are gone.

However, some students and their leaders have taken to social media to express their frustrations with delays especially in institutions onboarded by eZaga. “We are taken aback by the hypocritical decisions that the NSFAS board communicated to the public about various funding matters which include, among others, distribution of student allowances. It has been clearly indicated and substantiated that the four companies are not fit for the task of distributing students’ allowances.

“Our stance has been that student allowances should be directly paid to students with the sole purpose of eliminating the middleman approach. The opportunistic approach of commercialising NSFAS has proven to be a disaster and an enemy of progress.

“Students have been subjected to delays in payments, inefficient distribution systems by the companies to administer students’ funds. These companies have proven not to be reliable, professional,” said Sasco national president Vezinhlanhla Simelane.

eZaga confirmed the delay but distanced themselves and blamed NSFAS.

“To the students of the University of Limpopo and the Tshwane University of Technology, eZaga is aware of the delay in the disbursement of your April NSFAS funds. This delay is due to an issue on the side of the NSFAS and is not related in any way to eZaga.

“(We) remain fully committed to honouring the payment of students as soon as NSFAS resolves this matter and releases the payments to us so we can pay you. We understand the inconvenience this may cause and appreciate your patience and understanding during this time.”

EFF student command Western Cape had marched to NSFAS offices last week against what they labelled as a “collapsing and corrupt” entity that continues to starve students through “dismal failure” to effectively distribute allowances.

NSFAS did not respond to questions by deadline on Monday.

Cape Times

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