The National Student Financial Aid Scheme (NSFAS) is facing criticism and accusations of incompetence as it fails to meet its self-imposed deadline for paying outstanding allowances to approximately 20,000 students. The press conference scheduled for 18 January to address payment issues was abruptly canceled, and NSFAS released a late-night press release placing blame on universities for delayed submissions of registration data.
NSFAS claims that of the 20,000 outstanding allowances, 9,128 have been “successfully resolved,” and the remaining cases are prioritized for processing as part of the 2024 normal disbursement procedure. The scheme asserts that universities’ delays in submitting registration data are responsible for the outstanding allowances and vows to engage with universities to expedite resolution.
In response to the challenges faced, NSFAS now requires universities to submit details of all eligible students for funded, approved qualifications by no later than 31 March of the academic year. The fund emphasizes the importance of timely submission of registration information to facilitate proper processing of allowances. Furthermore, universities will not be allowed to change allowance types without NSFAS approval.
Student organizations have criticized NSFAS for its “perpetual inability” to fulfill its mandate of providing financial support to needy students. The scheme’s blame-shifting to universities has been met with skepticism, and student leaders are calling for immediate payment of all outstanding allowances before the closure of registration.
NSFAS has been under increased scrutiny, with allegations of corruption and mismanagement. A recent report by the Organisation Undoing Tax Abuse (Outa) named suppliers allegedly awarded corruption-tainted contracts, adding to the controversy surrounding the organization. The former CEO, Andile Nongogo, lost a court bid challenging his dismissal, and NSFAS has faced challenges in its attempts to regain public trust.
The delays in student allowance payments add to the challenges faced by students seeking accommodation and financial assistance as they commence their academic year. Student organizations are demanding accountability and swift action to address the payment delays, emphasizing the impact on students during this critical period.