Mismanagement And NSFAS Reform Demanded By SASCO. The National Student Financial Aid Scheme (NSFAS) is once again under the spotlight, with the South African Students Congress (SASCO) demanding critical reforms. Established in 1991 to advocate for students’ rights, SASCO continues to play a vital role in ensuring access to higher education. According to Mangaliso Nompula, the national spokesperson for SASCO, their mission today remains just as relevant as ever: “championing the interests of students in higher learning institutions.”

In recent times, SASCO has been particularly vocal about the failures within NSFAS, which has become the lifeline for many South African students striving for higher education. From bungled funding disbursements to unresolved appeals, NSFAS’s issues have reached a tipping point, forcing SASCO to increase pressure on the government and relevant authorities to fix these ongoing problems.

The Importance of NSFAS Funding for Students

Access to higher education in South Africa often depends on financial support, and for many students, NSFAS is the only means to pursue their academic goals. However, in recent years, the organization has been criticized for its inefficiencies and mismanagement. Nompula explains that funding is not merely about paying tuition; it’s about enabling students to attain qualifications, which in turn open doors to employment opportunities. Without financial backing, students face the risk of abandoning their studies, stalling their career progress.

NSFAS Struggling System

Earlier this week, the NSFAS attempted to test its online funding application system with a “dry run.” According to Higher Education and Training Minister Dr. Nobuhle Nkabane, this trial run was necessary to make critical changes to the system. However, SASCO has pointed out that the online application system has had a history of failures.

For example, Nompula emphasized that the system is plagued with issues like delayed responses to student appeals on declined applications. This delay often leaves students waiting until late in the academic year, resulting in them missing out on essential allowances that directly affect their ability to focus on their studies.

A History of Mismanaged Allowances

One of the most significant criticisms leveled against NSFAS is its handling of student allowances. In earlier years, NSFAS distributed allowances via vouchers, which were later replaced by direct cash transfers into students’ bank accounts. While this method had its challenges, the next shift proved disastrous: universities took over the distribution of these allowances.

Nompula claims that this change opened the door to corruption. Universities would allegedly delay payments, using the funds for personal investments, thus depriving students of timely access to money meant to support their academic success. SASCO recognized this as a failure and pushed for NSFAS to resume direct payments to students.

However, NSFAS then introduced middlemen in the form of fintech companies, such as eZaga, Coinvest Africa, Norraco, and Tenet Technology, to handle the distribution. These companies, according to Nompula, exploited the system. “They saw it as a money-making scheme, adding exorbitant costs to the minimal allowances meant to assist students,” Nompula said.

Ending the Middleman Contracts

In May 2023, NSFAS filed court papers to terminate its contracts with the fintech companies mentioned above. This move was welcomed by SASCO and other student organizations, who had long argued that these companies were siphoning off funds meant to assist students.

The exploitation by service providers led to mass protests organized by SASCO. These protests were fueled by the frustration of seeing taxpayers’ money being misused while students struggled to make ends meet. SASCO believes that the direct payment system should be reinstated and that fintech intermediaries should no longer have a role in handling student funds.

The Push for Reform

The leadership of SASCO is calling for urgent reforms within NSFAS. One proposal put forward by the organization is a return to the old system of hard copy applications alongside the digital system. They argue that relying solely on the online platform has led to numerous delays, with some students waiting a full academic year for responses to their applications.

Nompula stated that more than 20,000 students were left without any response from NSFAS last year, leaving them without the allowances they needed to survive. He expressed optimism that the appointment of the new Higher Education Minister, Dr. Nkabane, could bring about the necessary changes, but emphasized that time is of the essence.

A New NSFAS Board on the Horizon

In a move that signals potential reform, Dr. Nkabane announced plans to appoint a new board for NSFAS by the end of the month. She revealed that a panel would vet candidates for the board, and the minimum qualification required would be a master’s degree.

This development aligns with SASCO’s calls for stronger leadership within NSFAS. The organization has long criticized the competency of NSFAS’s management and believes that a well-qualified, experienced board will bring much-needed reform to the system. “We want to make sure we bring in capable and competent people who will serve the purpose,” said Dr. Nkabane.

Conclusion

The ongoing mismanagement within NSFAS has been detrimental to thousands of students relying on financial aid to pursue their dreams of higher education. The inefficiencies, delays, and corruption have not only eroded trust in the institution but have also jeopardized the future of many students.