NSFAS says universities partly blamed for disruptions at higher learning institutions

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The National Financial Aid Scheme (NSFAS) says universities are partly to blame for the disruption in higher learning institutions following the implementation of the scheme’s new direct payment system.

Academic activities were disrupted last week in various universities and TVET colleges due to protests over the scheme’s decision to implement the payment method as well as the defunding of undeserving students. NSFAS implemented the new direct payment system at universities in June.

Students allege they have not been receiving their monthly allowances and complain of high transaction fees.

The NSFAS leadership has briefed the media in Pretoria on the issues. This after it piloted the programme at TVET colleges. But it has been met with hostility leading to student protests.

Concerns over NSFAS new direct payment system

 

Some students claim they didn’t receive any allowances in June, while others can’t register on the app.

There are also allegations of the scheme awarding the tender to companies that did not qualify. It however, denies the exorbitant banking fees saying students also incurred charges with the previous service provider.

Board chairperson, Ernest Khosa says the deal was already done when the board was appointed two years ago.

“This is what we adopted. It was not initiated by us, it’s something we found on the table. It makes a lot of sense as we explain and adopt. Throughout the years the scheme has gone through a series of improvements in its processes as well as funding eligibility criteria. This was to ensure that funding solutions offered to students move on with the times and for purposes. It’s a tradition that before the finalisation and release of guidelines, the scheme embarks on a consultation process with sector stakeholders.”

The scheme says while there have been complaints about students who have not received their allowances, it represents only a tiny fraction.

He says many engagements were had with stakeholders prior to the implementation of the payment method and has mainly blamed institutions for failing to comply.

“One of the biggest contributions which is not only specific to the direct payment has been institutions’ non-compliance in submitting registration data. Legislation data is either submitted late or incorrectly and this disarms NSFAS as we can’t pay students whose registration has not been confirmed. NSFAS policy requires institutions to send updated registrations monthly.”

He says 86% of the students have received their allowances. He says the system will remain in place as it has advanced safety features to ensure the fund is not being defrauded.

“If we’re not firm on authenticating these students, we run a risk of paying ghost students. The systems we have put in place, providing your ID, and your face, will ensure that students authenticate please let them proceed and save us the trouble of funding ghost students.”

The scheme defunded about 50 000 students. It has since reinstated 14 000 following a re-evaluation.