NSFAS Vows to Clear Outstanding 2023 Student Allowances by Mid-January

In the wake of operational upheavals and governance issues, the National Student Financial Aid Scheme (NSFAS) has pledged to address the backlogs in student living allowances by January 15th, 2024. This move comes after students across South Africa voiced intense concerns over the delayed allowance payments, which are crucial for their educational sustenance and well-being.

NSFAS, a R50 billion funding apparatus entrusted with widening access to higher education, acknowledged the shortfall in the distribution of allowances for the year 2023. The affected figure stands at around 20,000 students, a significant number given the essential nature of these funds for many individuals relying on the bursary for living expenses.

The issues surfaced prominently when students, already facing the stress of end-of-year examinations, were met with the stark reality of their bursaries being held up. The delay was particularly critical as it related to living allowances, money explicitly intended for their day-to-day survival and academic-related needs, including food, transport, and hygiene products.

The NSFAS has weathered a storm of challenges, including IT malfunctions that hindered smooth operations. Additionally, the organization's credibility took a hit following revelations of "improper conduct" involving the then CEO, Andile Nongogo, who was placed on special leave in August after an investigation by the Organization Undoing Tax Abuse (Outa) into alleged conflict of interest concerning the appointment of service providers that were tasked with handling fund distribution. NSFAS came to the decision to terminate contracts with these providers in October 2023, as they were implicated in the misconduct.

There was a tangible sense of frustration among the students as evidenced by nationwide protests and a march to Parliament demanding attention from Higher Education Minister Blade Nzimande. The students' grievances were over NSFAS's new direct banking system, which was deemed inefficient and problematic.

Given the urgency of the situation, the NSFAS board convened urgently on December 31 to devise a solution for the non-disbursed allowances. The board, alongside Higher Education spokesperson Ishmael Mnisi, asserted the determination to clear the backlog by mid-January. Before allowances can be disbursed, however, there is a need for input from the educational institutions affiliated with the impacted students.

Looking to the future, NSFAS is not only focused on remedying the current situation but also on adjusting its budget and laying down plans for the 2024 academic year. This forward-thinking approach encompasses the development of a novel NSFAS funding model, as announced by Deputy President Paul Mashatile, which promises to include the "missing middle" – a segment of the student population that traditionally falls between the cracks of financial aid eligibility.

The controversies and operational hiccups have underscored the critical importance of reliable and transparent systems for student funding. NSFAS's commitment to resolving the payment issues is a welcomed one, and the deadline set serves as a benchmark for the organization's accountability to the students it serves.