The National Student Financial Aid Scheme (NSFAS) has resolved that it will investigate allegations involving the new direct-payment system after students raised issues including a delay in payments, as well as disappearing allowances.
Students have also raised their concern over excessive fee charges, inaccessibility of service providers and lack of clarity on how to access funds.
NSFAS introduced the direct payment, partnering with banking service providers including eZaga, Tenetech, Coinvest and Norraco, to ensure its accountability on student allowances and to establish a better co-ordinated system of the transfer of funds to students.
This is a five-year contract to directly pay student allowances through a compulsory bank account.
The scheme and service providers met the South African Union of Students (Saus), where a number of demands were made.
Saus president Yandisa Ndzoyiya said that they were disappointed and condemned the “disruptive and inefficient” manner in which the NSFAS, along with service providers, “failed” in ensuring that students received their allowances on time.
“In all engagements with all stakeholders, including with the service providers, we maintained, to which the meeting agreed that all fees, except for a R12 administration fee be abolished.
“NSFAS committed, with the service providers, to adhere to this demand as soon as possible.
“Amongst some of the challenges experienced by students was the non-user-friendliness of the payment system and the unavailability of staff from service providers to assist students to sign up and receive their allowances,” said Ndzoyiya.
He said that the service providers had committed, as soon as universities opened, to bolster and deploy staff members across all universities to assist students to sign up.
NSFAS spokesperson Slumezi Skosana said that the scheme would not allow a system that was established in good faith to be muddled with issues that defeat the purpose of direct payment.
“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.
“There should be an immediate enhancement of explanations on how students can access their funds to avoid delays in the distribution of allowances.
“However, it should be noted that the transaction costs or charges are standard across all partners,” said Skosana.
Cape Times