NSFAS processes payment for qualifying beneficiaries

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Addressing the media on the developments in the implementation of his mandate on Tuesday, 6 August, Nomvalo highlighted that one of the urgent interventions made by the new Administrator was to migrate the Technical Vocational Education and Training (TVET) NSFAS beneficiaries into a direct payment system through their banker.

This follows frustrations experienced by students in receiving their allowances.

Nomvalo said from the data received, about 6% of students are not receiving their allowance because they either failed the verification process due to incorrect information they provided, while some did not capture their banking details.

Nomvalo said, that despite various efforts made by NSFAS to get these students to capture their banking details, the students have not responded.

“There are two possible scenarios; one is that, these students have no means to reach us, possibly the messages did not reach them or regrettably, some of these could be non-existent students. What is more worrying is that to date we have not received complaints from students who may have not received their allowances,” Nomvalo said.

He said NSFAS will continue to engage with institutions and students to submit their details for their allowances to be paid in the next payment run while investigating the validity and existence of these students.

On the university payments, Nomvalo reported that the administration had made a decision to extend the current arrangement with universities to facilitate payment of allowances to NSFAS beneficiaries.

He said the arrangement, which follows consultations with the South Africa Universities South Africa (USAF), is extended until the end of the 2024 academic year.

“This decision arrived in response to USAF and in support of the beneficiaries, as well as the stability of the Post School Education and Training (PSET) system,” Nomvalo said.

The Administrator added that the scheme also intends to migrate the university allowances to a more cost-effective and efficient payment system.

“The planning for the migration of universities was halted by the interdict warded in favour of Ezaga and others by the Western Cape High Court on 12 July 2024, which NSFAS is appealing,” he said.

ICT system delays conclusion of student appeals

Meanwhile, Nomvalo said the delays in finalising student appeals, loans, and the 2023/2024 funded lists, are directly connected to the current NSFAS ICT system.

Nomvalo noted that the only default position at this stage is to constantly introduce a manual process of verification, which is “completely cumbersome and over overstretching staff.”

He said in 2023 alone, NSFAS received about two million applications.

“It is almost impossible to expect NSFAS staff to manually conduct verification of these applications at some point in the value chain [and] such a work environment is undoubtedly prone to errors,” Nomvalo said.

He announced that with additional capacity acquired, NSFAS will be communicating with universities, including TVET colleges and students on final lists, not later than end of August 2024.

“On behalf of NSFAS, we wish to express our sincere apologies to the affected students and our colleagues in the PSET system. We are working hard to ensure the 2025 academic year is less burdened with the same issues,” Nomvalo said.