Pretoria – Freeman Nomvalo, Administrator of the National Student Financial Aid Scheme (NSFAS), announced significant progress in processing payments for beneficiaries who have provided their banking details. During a media briefing on the implementation of his mandate, Nomvalo detailed recent steps taken to enhance the efficiency of financial disbursements to students.
According to South African Government News Agency, NSFAS has successfully migrated Technical Vocational Education and Training (TVET) beneficiaries to a direct payment system via their banks, addressing previous delays in disbursing allowances. He noted that approximately 6% of students have not received payments due to either failed verification processes—often because of incorrect information—or lack of provided banking details. Despite efforts to contact these students, responses have been inadequate. “There are possibilities that these students either cannot reach us, did not receive our messages, or, concerning, some might be non-existent,” Nomvalo explained. He assured that NSFAS is actively working to engage institutions and students to ensure that all eligible beneficiaries receive their allowances in upcoming payment cycles and is investigating the validity of unresponsive cases.
For university students, Nomvalo reported that NSFAS has extended its existing payment arrangement, facilitated by universities, through the end of the 2024 academic year. This decision, made in consultation with Universities South Africa (USAF), aims to maintain stability within the Post School Education and Training (PSET) system. Additionally, plans are underway to transition these payments to a more cost-effective system, although this has been temporarily halted due to a legal challenge. “The planning for the migration of university allowances was interrupted by an interdict from the Western Cape High Court, which we are appealing,” he stated.
Nomvalo also highlighted challenges with the NSFAS ICT system, which have delayed the finalization of student appeals and the processing of loans and funded lists for the 2023/2024 academic year. The current system’s limitations have forced staff to rely on manual verification processes, which are not only burdensome but also prone to errors. In 2023, NSFAS handled approximately two million applications, emphasizing the unsustainable nature of manual checks. “We are determined to resolve these issues to avoid a similar situation in the 2025 academic year,” Nomvalo added, apologizing to affected students and PSET colleagues for the ongoing difficulties.