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The National Student Financial Aid Scheme (NSFAS) in South Africa has been accused of failing to pay students as promised, with the scheme claiming it has managed to pay just under half of last year's outstanding allowances. The deadline for payment was set for 15 January, but the deadline was later cancelled, and a press conference was canceled. Student organizations are calling out the scheme for its "perpetual inability" to support needy students financially. NSFAS claims that of the 20,000 outstanding allowances, 9,128 have been "successfully resolved," with the remainder being prioritised and processed as part of the 2024 standard disbursement procedure.
NSFAS attributed these remaining outstanding allowances to delays in the submission of registration data by universities. The scheme now expects the details of all eligible students studying for funded, approved qualifications to be submitted by no later than 31 March of the academic year. Universities will not be permitted to change allowance types submitted within a particular academic term without the change being approved by NSFAS before such a claim is submitted and the necessary budgetary approval is obtained.
In response to allegations in the Outa report that it was linked to supplier kickbacks, the SA Communist Party denied receiving kickbacks, and Higher Education and Training Minister Blade Nzimande threatened legal action. NSFAS's former CEO, Andile Nongogo, lost his labor court bid on 9 January challenging his dismissal, and Professor Lourens van Staden was appointed as acting chairperson in Ernest Khosa's place after Khosa was also linked in the report to alleged kickbacks from suppliers.
The SA Union of Students expressed appalled at the "regrettable and perpetual inability" of NSFAS to deliver on its mandate and commitments, first made on 21 December to pay students their outstanding allowances by 15 January. The SA Students Congress (Sasco) president, Vezinhlanhla Simelane, said on Friday that Sasco did not support nor endorse any form of misappropriation or corruption of public funds.
Thursday's announcement of the matric results signalled the beginning of one of the most challenging periods in higher education, as thousands of students seek accommodation and financial assistance for their studies. Sasco is calling for the immediate payment of all outstanding allowances before the closure of registration.
It was uncertain whether the organisations were prepared to escalate their threats, as neither Sasco nor the SA Union of Students responded to requests for comment on Friday.
