• NSFAS says it has paid out R3.1 billion to student beneficiaries at TVET colleges around the country in the 2023 academic year so far.
• It says these payments were made via the new and controversial direct student payments.
• Despite all the noise surrounding the new system, including protest action, NSFAS says it will continue to use it.

The National Student Financial Aid Scheme (NSFAS) continues to be in hot water over the controversial launch of the new direct student payment system, and other decisions the scheme has taken as of late.

Despite mounting protest action from students it claims to be serving, and promises of legal battles on the wings from political parties and the public protector, NSFAS is more than happy to continue disbursing payments using the system.

The latest from an announcement on X tells that the scheme has given student beneficiaries at technical and vocational education and training (TVET) colleges nationwide a total of R3.1 billion this year so far. It says these payments were made through the direct payment system, which launched on 1st July this year.

NSFAS claims that TVET students have been using direct payments from the scheme since November 2022.

For September alone it paid its TVET beneficiaries, around 108 534, a total of R405 million, or an average of R3 731.50 per student. This is less than the currently allowed minimum wage of around R4 953.09 per month.

“These payments were made directly to the students through the NSFAS Bank Account system,” it says.

“As more students are registered and onboarded onto the direct payment solution, NASFAS continues to make payments as per valid registration data received from institutions.”

The NSFAS Bank Accounts launched alongside the direct payment system, in July of this year as most tertiary students were on holiday.

There remains a percentage of registered NSFAS students who have yet to start using the new system, which is now the only way for NSFAS beneficiaries to receive their funding, including living expenses and tuition fees. Many students initially struggled to get on the system in the first place.

“Due to the teething issues experienced with the introduction of the system, NSFAS resolved to have continuous engagements with sector stakeholders to tackle these issues,” the scheme explains.

Earlier this month NSFAS issued a statement claiming that the direct payment system was working as intended and that negative comments against the system were simply “a deliberate media smear campaign to discredit the payment platform.”

The scheme has handed out at least R3.7 billion this academic year so far to its nearly 1 million strong beneficiaries.