NSFAS News

NSFAS Implements Direct Payment System for TVET College Allowances to Address Delays

Published

4 weeks ago

April 26, 2025

NSFAS Implements Direct Payment System for TVET College Allowances to Address Delays. The National Student Financial Aid Scheme (NSFAS) has announced a significant change in the disbursement of allowances to Technical and Vocational Education and Training (TVET) college students. Starting from the end of May 2024, NSFAS will distribute allowances directly into students’ bank accounts, moving away from previous third-party payment methods.

Addressing Payment Delays

This decision follows widespread concerns over delays and non-payments of allowances, which have affected students’ ability to cover essential expenses such as accommodation, meals, and learning materials. In some cases, students reported missing funds and faced eviction due to unpaid accommodation fees.

In response, NSFAS Administrator Freeman Nomvalo held an urgent meeting with the South African Technical Vocational Education and Training Student Association (SATVETSA) on April 23, 2024. The meeting aimed to address students’ dissatisfaction with the existing disbursement system and to develop a more efficient payment mechanism.

Implementation of the Direct Payment System

Under the new system, NSFAS will deposit allowances directly into students’ personal bank accounts. This approach eliminates intermediaries, reduces transaction costs, and ensures timely payments. Previously, each transaction cost NSFAS R22 and students R10; the new system reduces this to less than R1 per payment.

To facilitate this transition, NSFAS urges all TVET students to open bank accounts with a financial institution of their choice if they have not already done so. Students must then update their banking details on the myNSFAS portal to receive their allowances without delay.

Clarification on April 2025 Allowance Payments

Amidst circulating rumours about delays in April 2025 allowance payments, NSFAS has clarified that these claims are unfounded. The organization confirmed that there are no delays in the payment of April allowances for TVET college students and labeled the misinformation as “fabricated”. NSFAS advises students and stakeholders to rely solely on official communication channels, including the NSFAS website and verified social media accounts, for accurate information.

Future Outlook

NSFAS plans to extend the direct payment system to university students by September 2024, aiming to streamline the allowance disbursement process further and eliminate the role of third-party service providers. This move is part of NSFAS’s broader strategy to enhance the efficiency and transparency of financial aid distribution, ensuring that students receive the support they need promptly and securely.

Conclusion

The implementation of the direct payment system marks a significant step forward in NSFAS’s efforts to improve the financial aid process for TVET college students. By addressing previous challenges and reducing reliance on intermediaries, NSFAS aims to provide a more reliable and cost-effective solution for students’ financial needs.