Connect with us


NSFAS Aims To Dissolve Payment Partners Through Legal Action



NSFAS Aims To Dissolve Payment Partners Through Legal Action

NSFAS Aims To Dissolve Payment Partners Through Legal Action. The National Student Financial Aid Scheme (NSFAS) has taken significant legal steps to dissolve contracts with several payment partners. This move is part of a broader effort to ensure transparency and accountability in the disbursement of funds to students across South Africa. Here’s a detailed look at the ongoing legal battle and its implications.

Urgent Court Order To Terminate Contracts

NSFAS, in collaboration with the Special Investigating Unit (SIU), filed an urgent order to stop contracts with payment providers such as eZaga. This move aims to address concerns over the integrity and efficiency of these payment systems.

High Court Dismisses eZaga Appeal

eZaga Holdings, a former payment partner of NSFAS, brought a court order to the Western Cape division of the High Court of South Africa. The aim was to prevent NSFAS from terminating its contract. However, the court dismissed this appeal, with costs, reinforcing NSFAS’s decision to terminate the contract.

Ongoing Disbursement By Payment Providers

Despite the termination efforts, the four payment providers, including eZaga, continued to disburse funds to students at public universities and TVET colleges across South Africa until March. NSFAS indicated at the time that there were no alternative means to disburse funds.

SIU Role In Finalizing Terminations

The SIU, known for its role in combating corruption, joined NSFAS in the court battle. Their involvement underscores the seriousness of the situation and the commitment to ending potentially problematic contracts with these payment providers.

Efforts To Reverse Termination Decisions

eZaga and Noracco, another payment provider, are actively seeking to reverse NSFAS’s decision to terminate their contracts. This effort follows the publication of a report that led to the dismissal of Nongogo and raised questions about the contracts’ legitimacy.

Financial Implications Of The Contracts

According to the Organisation Undoing Tax Abuse (OUTA), the contracts with the four payment providers were valued at a potential R5 billion over ten years. This substantial financial figure highlights the importance of transparency and proper management in NSFAS’s dealings.


NSFAS legal actions to dissolve payment partner contracts underscore its commitment to accountability and efficient fund disbursement. The involvement of the SIU further reinforces these efforts. As the legal battle continues, the focus remains on ensuring that student financial aid is managed transparently and effectively, benefiting the students it is meant to support.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Must You Reapply For NSFAS When Transitioning From University To TVET College?



Must You Reapply For NSFAS When Transitioning From University To TVET College?

Must You Reapply For NSFAS When Transitioning From University To TVET College? The National Student Financial Aid Scheme (NSFAS) is a comprehensive financial aid program designed to assist students in pursuing higher education at public universities and TVET Colleges in South Africa. If you’re transferring from one type of institution to another, you might wonder about the implications for your NSFAS funding.

Transitioning From University to TVET College

Are you aiming for a rewarding career but find that traditional university education isn’t the right fit for you? NSFAS can help you realize your goals by providing funding for TVET Colleges. This support can turn your passion into reality by covering essential educational expenses.

What NSFAS Covers

NSFAS offers bursaries and loans to cover the costs of:

  • Tuition
  • Registration
  • Essential living expenses (accommodation, transportation, etc.)

Do You Need To Reapply for NSFAS?

If you are transitioning from a university to a TVET College, it is crucial to understand the NSFAS policy on reapplication. According to the NSFAS Eligibility Criteria and Conditions for Financial Aid:

“Students who change institution types (i.e., shift from TVET College to University or vice versa) must re-apply for funding”.

This means that if you are moving from a university to a TVET College, you will need to reapply for NSFAS funding. It’s also important to note that NSFAS only funds students pursuing their first certificate or undergraduate qualification.

How to Apply for NSFAS

Step 1: Create A MyNSFAS Account

  1. If you already have a myNSFAS account, click on ‘login’ at the myNSFAS portal and complete your information.
  2. If you don’t have a myNSFAS account, click on ‘Create account’ and follow the prompts to set up your account.

Step 2: Log Into Your myNSFAS Account

  1. Use your login details to access your myNSFAS account.

Step 3: Complete The Application

  1. Click on ‘Apply’.
  2. Answer the questions displayed on the screen.
  3. If necessary, upload any supporting documents (often, this step is not required).
  4. Click on ‘Submit’.

Step 4: Receive Your Application Reference Number

After submitting your application, you will receive an application reference number. Keep this number safe for future reference.

NSFAS Funding Eligibility

NSFAS provides funding to students from poor and working-class backgrounds who are studying towards a qualification at one of the 26 public universities or 50 TVET Colleges.


Transitioning from a university to a TVET College can be a significant step in your educational journey. While this move requires reapplying for NSFAS funding, the process is straightforward and ensures that you continue to receive the financial support needed to achieve your educational and career goals.

Continue Reading