NSFAS-Funded Students Left Waiting for November Allowances: New Payment System Woes

NSFAS-Funded Students Left Waiting for November Allowances: New Payment System Woes. In this article, we discuss the significant issues faced by almost 100,000 students funded by the National Student Financial Aid Scheme (NSFAS) in South Africa. These students are still awaiting their November allowances, which has raised concerns and led to protests at some institutions.

Introduction of Controversial Direct-Payment System

Back in June, NSFAS introduced a controversial new direct-payment system. This system aimed to streamline the process by providing funds directly to students rather than routing them through the educational institutions they attend. However, the implementation of this system has been fraught with problems.

Long Delays and High Transaction Costs

The most pressing issue surrounding the new direct-payment system is the delay in disbursing allowances. Many students have experienced significant delays in receiving their financial support, while some have not received their allowances at all. In addition to these delays, students have been burdened with high transaction costs associated with the new NSFAS accounts they were issued.

Protests and Parliamentary Accountability

These issues have triggered protests at various educational institutions, with students and stakeholders expressing their frustration with the ongoing problems. Furthermore, the companies responsible for administering the new system have been called to account before Parliament to address the shortcomings and provide solutions to the crisis.

NSFAS Responds to the Crisis

NSFAS spokesperson Slumezi Skosana acknowledged the challenges and stated that some universities had failed to stop disbursing allowances themselves, contrary to the new system’s instructions. NSFAS is working with these institutions to resolve the issue.

Lack of Response to Media

Notably, NSFAS spokesperson Slumezi Skosana did not respond to a request for comment from Eyewitness News, leaving many questions unanswered.

Conclusion

The NSFAS-funded students’ struggle to receive their November allowances due to the troubled direct-payment system highlights the urgent need for resolution and improved control measures to prevent further delays and financial hardships for students across the country.

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