NSFAS says cutting out middleman streamlined student allowance payments
NSFAS, which runs a multi-billion-rand annual budget providing study loans to eligible students at tertiary institutions, has often faced a number of challenges, including deficiencies in the rollout of funds to millions of its beneficiaries.
NSFAS administrator Freeman Nomvalo at a media briefing. Picture: @Facebook.com/nsfas
JOHANNESBURG - The National Student Financial Aid Scheme (NSFAS) said cutting out the middleman had helped make the payment of student allowances more seamless.
This, as the organisation continues to clean up house.
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NSFAS runs a multi-billion-rand annual budget providing study loans to eligible students at tertiary institutions.
However, the scheme has often faced a number of challenges, including deficiencies in the rollout of funds to millions of its beneficiaries.
Fintech companies Coinvest, Ezaga Holdings, Norraco Corporation, and Tenet Technology were awarded contracts to the value of R47 billion over a period of five years to pay allowances from NSFAS to students.
Earlier in 2024, NSFAS filed court papers to terminate the contracts.
Pending the finalisation of litigation with Ezaga over the matter, allowances are currently being paid directly to student accounts.
NSFAS administrator Freeman Nomvala said work was being done to streamline the process and make it more cost-effective.
"We haven’t seen burning of tyres - touch wood we don’t want to go back there. We haven’t seen students demonstrating as a result of allowances, so those are some of the tangible things we can talk about."
Nomvala said he hopes the start of the next academic year will be less frustrating.