NSFAS proud of progress in new payment system

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Published Aug 7, 2023

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While the National Student Financial Aid Scheme (NSFAS) said it had successfully on-boarded 86% of students onto the scheme's new direct payment system, student leaders claim experiences on the ground remain a concern.

According to the South African Union of Students (Saus), the financial aid scheme was yet to implement changes to respond to students' challenges with the direct payment of allowances to students through their bank card.

This includes a delay in payments, as well as disappearing allowances.

Students have also raised their concern over excessive fee charges, inaccessibility of service providers and lack of clarity on how to access funds.

NSFAS introduced the direct payment, partnering with banking service providers including eZaga, Tenetech, Coinvest and Norraco, to ensure its accountability on student allowances and to establish a better coordinated system of the transfer of funds to students.

This is a five-year contract to directly pay student allowances through a compulsory bank account.

NSFAS initially said it would investigate allegations involving the payment system.

The financial aid scheme said on Friday it was proud that after just two months of implementation at universities almost all students now had access to a new payment system.

“This achievement marks a pivotal moment in our ongoing commitment to providing efficient and timely financial support to our beneficiaries.

While we observe this milestone, we are cognisant that challenges persist.

Approximately 14% of students are yet to access the full benefits of their bursary and this new venture. NSFAS remains resolute in its commitment to seamless accessibility of funds, and we are actively working to resolve any remaining barriers that hinder the disbursement of allowances to these students,” it said.

NSFAS said it also continued to collaborate closely with Technical, Vocational Education and Training (TVET) college officials as well as student bodies.

“NSFAS will host a media briefing to address colleagues in the media and public at large on all issues pertaining to the direct payment solution, de-funding of underserving students, streamlining of student accommodation and preparations for the 2024 Application cycle,” it said.

SAUS national spokesperson Asive Dlanjwa said they were still waiting for NSFAS to respond to issues raised by implementing measures that will help students’ experience with the new system.

“As the students union we are consolidating a report from universities and a preliminary report about the new system. While NSFAS is stating things they are proud of or is a success about, this new system does not reflect student realities on the ground. As a result there were protests at about five institutions over delayed allowances and other issues,” said Dlanjwa.

Cape Times

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