NSFAS Concluding 2024 Allowance Payments and Reconciliation. In the year 2024, a significant number of students were deprived of their entitled NSFAS allowance payments. The National Student Financial Aid Scheme (NSFAS) has undertaken measures to address this issue and has taken action to conclude all pending allowance payments.
Substantial Payments to Universities
NSFAS has confirmed disbursements amounting to nearly R2 billion to universities across South Africa. These payments are a crucial component of the scheme’s endeavors to finalize all outstanding allowance payments from the academic year 2024.
Approximately R1.7 billion was disbursed to institutions on January 27, 2024, specifically for the settlement of unpaid 2024 NSFAS allowances.
Unpacking Unpaid 2024 Allowances
NSFAS, renowned for providing comprehensive bursaries to university and TVET college students, not only covers registration and tuition fees but also extends various allowances to assist with study-related expenses.
In 2024, a reconciliation process was initiated by NSFAS to ensure accurate payment of allowances to students. Factors such as living arrangements, accommodation types, and enrolled course specifics influence the allowances received. Unfortunately, due to this reconciliation, several students were left without their entitled NSFAS allowances.
Addressing Outstanding Allowances
Out of the 20,000 outstanding allowances from the 2024 academic year, NSFAS has successfully resolved 9,128 allowances in January. The remaining 11,000 allowances are currently prioritized and will undergo processing as part of the regular 2024 disbursement procedure.
Higher Education Minister Blade Nzimande has urged institutions to collaborate with NSFAS in resolving allowance payment challenges. Additionally, he has encouraged institutions to allow students to register for the 2024 academic year, even if their fees remain unpaid due to NSFAS-related issues.
NSFAS Closeout Project
NSFAS has initiated an ongoing process known as the Closeout Project to reconcile transactions between NSFAS and institutions at a student level. This project aims to address issues affecting student funding statuses and payments from previous academic periods across all 50 TVET Colleges and 26 Universities.
Collaborating closely with institutions, NSFAS has completed reconciliations for the academic years 2017-2022. Draft agreements outlining amounts owed to NSFAS and by institutions have been distributed, with some institutions already signing them.
As a commendable outcome, NSFAS has successfully recovered approximately R600 million, excluding any recoveries made by the Special Investigation Unit (SIU). The current focus for NSFAS involves finalizing agreements with remaining institutions and arranging settlements for outstanding amounts.
