• After weeks of irate students complaining about how NSFAS implemented its new bank account system, the scheme has issued an official response.
• Despite this, NSFAS only says that it will look into the matter, but that it takes full responsibility for the actions of its partners, including eZaga, Narroco, Tenet Technologies, and Coinvest.
• NSFAS has begun a process to defund students it has found that signed up to the scheme with “wrong information.” It says it hopes to not repeat an earlier blunder that cost taxpayers R5 billion.

It feels like July is NSFAS month at Hypertext. The National Student Financial Aid Scheme launched its new bank accounts to students at the beginning of the month and has seen sustained backlash since prompting our coverage.

The story is developing, and now after weeks of silence on the part of NSFAS, the scheme has finally issued official comments. However, students and beneficiaries struggling with the new accounts shouldn’t get too excited, as the scheme’s entire response can be broken down into “We’ll look into it.”

This after weeks of students complaining about exorbitant fees associated with the new bank accounts, inaccessibility of service providers like Coinvest, Narroco, Tenet Technologies, and eZaga, as well as a general lack of clarity around how to access the funding.

In its response, issued via a press statement, NSFAS says that it “will not allow that a system that was established in good faith be muddled with activities that defeats the purpose of direct payment.”

As such, to begin addressing complaints, NSFAS will be launching an “investigation of the complaints will be conducted and where the allegations are proven true, appropriate action will be taken.”

“Service providers will be instructed to increase their physical presence at institutions of higher learning so that they can respond directly to student queries on direct payment,” it adds.

The scheme says that there should also be an immediate enhancement of explanations on how beneficiaries can access their funding to avoid delays. Many students said that they simply didn’t know how to onboard themselves onto the new bank accounts.

We agree, as NSFAS beneficiaries are being forced to use these accounts as the only means to access their living wages and fund their studies.

We also found that the signup process was needlessly confusing.

Especially since students at different universities and colleges will have to use different banking partners.

“NSFAS expects the new system to be not only convenient to students but also to provide for allowances in a manner that is both dependable and predictable to students. It is expected that all students should receive their allowances by a prescribed date of the month and that there should be no room for long lapses of time due to delayed transfers between the University and NSFAS,” the scheme said, adding that it assumes direct responsibility on the actions of its partners.

This includes Tenet Technologies, which is being sued for copyright infringement by an educational institution also called Tenet.

NSFAS defunds some students

On Tuesday, NSFAS said it would begin a remedial process where some students would have their funding stricken if they were found to have secured funding using “wrong information.”

These steps are being taken to avoid the misallocation of funds. Since 2016, shoddy upkeep of information by NSFAS saw more than R5 billion of taxpayer money given to people who did not require it.