New NSFAS Payment System Protest by University Students Once Again

A significant number of these students are unable to access their NSFAS allowances, which has led to widespread discontent and protests erupting across various universities.

Tshwane University of Technology (TUT) Protests Against New NSFAS Payment System

The implementation of NSFAS’s new direct payment system has sparked a series of protests at the Tshwane University of Technology (TUT). Students at TUT have voiced their concerns over what they view as a hurried and flawed decision by NSFAS, resulting in disruptions and a demand for immediate action from the Department of Higher Education and Training (DHET).

Escalating Student Protests: Demands for Ministerial Address

The protests, which began last week, have intensified as students express frustration over glitches and delays in the new payment system. Demands have been made for Minister Blade Nzimande or another representative from DHET to address the students and address their grievances. Among the key concerns is the erroneous defunding of eligible students under the bursary scheme, leaving them in a precarious position.

Protests Reach Boiling Point

Over the past few weeks, the intensity of the protests has escalated, culminating in a gathering of more than a thousand students outside the DHET’s headquarters. Despite an initial agreement between universities and NSFAS to investigate the issue of missing allowances, it seems that this agreement has dissolved, contributing to the mounting tensions on university campuses.

NSFAS’s New Direct Payment System Unveiled

NSFAS introduced a novel approach to payment distribution earlier this year, unveiling a new Mastercard for bursary recipients as part of its digital transformation strategy. The aim was to provide beneficiaries with greater control over their funds. Minister Blade Nzimande explained that this secure and student-centered approach would enable allowances to be disbursed through bank cards.

Initial Challenges and Feedback

While NSFAS successfully initiated the payment of allowances through the new system in June, not all feedback has been positive. Several challenges have emerged, including reports of students not receiving their funds, excessive bank charges, technical glitches, and unauthorized access resulting in financial losses.

Investigation and Concerns Over Third-Party Service Providers

Suspicions surrounding the involvement of third-party financial service providers in the new payment system led to an investigation by the South African Public Protector. The public protector’s office is looking into the awarding of the contract for the new NSFAS direct payment system, particularly focusing on the relationship between NSFAS CEO Andile Nongogo and one of the service providers, Coinvest.

Political and Stakeholder Involvement

The Democratic Alliance (DA), South Africa’s Official Opposition Party, has joined the conversation by requesting clarity from Minister Blade Nzimande and the Banking Association of South Africa (BASA) regarding the challenges associated with the new direct payment system. The DA seeks transparency on the application requirements for financial institutions, the selection process for service providers, and the potential benefits for students.

Persisting Challenges and Student Discontent

These recent protests and issues within NSFAS are not isolated incidents. Student dissatisfaction has been a recurring theme as challenges ranging from application delays to accommodation crises continue to plague the bursary scheme. The 2023 academic year has particularly exacerbated these problems, leaving students questioning the reliability of a system crucial to their tertiary education.

In conclusion, the NSFAS allowance payment system overhaul has sparked widespread concerns and protests among students, raising questions about its effectiveness and transparency. As the situation continues to unfold, stakeholders and authorities are under increasing pressure to address the grievances and rectify the issues at hand.