Scrap NSFAS and pay institutions directly Nzimande response. The NSFAS program is recognized as a crucial government intervention in removing financial barriers for students, but there have been concerns that have led to calls for change.
Student Forum Advocacy
As a result of leadership instability and alleged irregularities in NSFAS allowance contract awards, the Student Forum for Service Delivery advocates scrapping NSFAS and transferring funds directly to universities.
NSFAS Overview
In South Africa, NSFAS provides comprehensive funding for over one million students enrolled in public universities and TVET colleges, covering tuition, registration fees, housing, meals, and stationery allowances.
Evolution: Direct Allowance Payment System
From 2022 to 2023, NSFAS will provide direct allowance payments to TVET colleges and universities.
Investigation Findings
The investigation in 2023 revealed potential relationships between NSFAS CEO Andile Nongogo and Fintech companies handling direct payments. NSFAS plans to terminate contracts, but the timeline is uncertain.
Ministerial Standpoint: No Return to Direct Institution Payments
In response to forensic investigations, Minister Nzimande rejects the return of direct institution payments, citing past corruption issues.
Commendation for Improvements
NSFAS has benefited from system improvements that have improved fund distribution efficacy to students, according to the minister.
Challenges in Direct Allowance Payments
There were challenges in implementing direct allowance payments.
Late Payments and Onboarding Difficulties
There were delays, excessive bank charges, and difficulties onboarding students.
NSFAS Bank Account Charges
OUTA’s price comparison shows that students reported higher fees than the R12 monthly charge cited by NSFAS.
Ministerial Response to Bank Charges
Despite the inevitability of bank charges, Nzimande cites negotiated lower costs and directs NSFAS to lower them even further.
Conclusion
While facing challenges, NSFAS remains a vital force in South African education. The call to scrap it sparks debate, but Minister Nzimande asserts the necessity of direct student funding. Ongoing improvements and negotiations reflect a commitment to enhancing accessibility.
