• The National Student Financial Aid Scheme (NSFAS) says it has initiated a remedial process where students will be defunded if they secured funding based on the wrong information.
• The scheme says this process is being taken as up to R5 billion has been allocated incorrectly to students since 2016.
• NSFAS says it is also launching an investigation into claims that students are being overcharged for newly linked banked accounts.

The National Student Financial Aid Scheme (NSFAS) continues to be in the news of late, with it now stating that it will be defunding students.

Before people get their pitchforks, the scheme explains that this is part of remedial process where it is only defunding students who were originally awarded funding by supplying or applying with incorrect or inaccurate information.

These steps are being taken in order to avoid the incorrect allocation of funds, which has cost both the scheme and by extension South African citizens dearly because of it.

“The prescriptions of our policies and the law will be implemented firmly and vigorously to avoid a repeat of the more than R5 billion that was allocated incorrectly to students since 2016,” it said in a statement per SA News.

The above revelation surfaced following an SUI investigation in which 76 institutions, including 40 044 students, where found not have correctly qualified for bursaries between 2018 and 2021.

Naturally this is something that NSFAS is hoping to avoid moving forward.

“Where needed, engagements will continue to be made with the relevant stakeholders and this will be done with the objective of receiving valuable inputs in improving our service to students and in full observance of our policies and the law,” NSFAS said in a meeting with the South African Students Congress (SASCO) and the South African Union of Students (SAUS) in recent days. 

“NSFAS will proceed with implementing new policy decisions in a manner that is firm, legal and within the dictates of her policies,” it continued.

While it remains to be seen what will happen to students for the 2024 academic year, it will also be interesting to see how many students were incorrectly funded between 2021 and 2023.

With its plans regarding defunding students now laid out, NSFAS still has the not so small matter of new bank accounts and cards to deal with, which have earned the ire of learners given the disproportionately large fees associated.

NSFAS says it is looking into the matter, but it is unclear if an amicable outcome will be reached, especially as this new system was forced upon students who had little to no say in the process.

“Where the allegations are proven true, appropriate action will be taken. There should be an immediate enhancement of explanations on how students can access their funds to avoid delays in the distribution of allowances, and there will be a three-way meeting between student leaders, NSFAS management and the service providers on 11 July to iron out all relevant matters,” the scheme’s statement concluded.

Hypertext too has reached out for NSFAS for comment on the matter, and will share any feedback received on this developing situation.