Thousands of university students in South Africa rely on NSFAS allowances to cover essential expenses while pursuing their academic goals. The National Student Financial Aid Scheme (NSFAS) has recently confirmed changes in how these allowances will be distributed for the remainder of the 2024 academic year.
NSFAS Funding Overview
NSFAS provides comprehensive financial aid to eligible students enrolled in accredited university programs. This support includes funding for tuition and registration fees, as well as allowances for living expenses, accommodation, transportation, and learning materials.
Change in Payment Responsibility
Previously, NSFAS engaged four service providers to handle student allowance payments. However, due to allegations of corruption and subsequent legal actions, these companies have been removed from the process.
Effective April 2024, NSFAS announced that universities would assume responsibility for distributing student allowances until the end of July 2024. Initially, it was anticipated that this arrangement would extend through the end of the year. However, following a meeting between Universities South Africa (USAF) and NSFAS Administrator Freeman Nomvalo, it has been confirmed that universities will continue to manage allowance payments for the entire 2024 academic year.
Ensuring Accurate Payments
NSFAS will maintain its role in disbursing allowances and tuition fees to institutions based on validated student registration data. Universities are required to provide accurate registration information to ensure that all students receive their allowances. Institutions have been advised to thoroughly verify student data before issuing payments to avoid discrepancies.
Development of a New Payment System
In May 2024, Freeman Nomvalo indicated that a new system for managing NSFAS allowance payments was expected to be fully operational by September 2024. Despite this, the recent changes in payment procedures cast uncertainty on whether this timeline will be met. Further information regarding the allowance distribution system for the 2025 academic year will be communicated in the coming months.NSFAS Announces New Allowance Payment Procedure for University Students