NSFAS is nearing collapse, says student union

The SA Union of Students (SAUS) has sounded the alarm on the crisis-plagued National Student Financial Aid Scheme (NSFAS), saying it is on the brink of collapse.

To date, NSFAS has fallen behind on crucial deadlines and won’t be ready for the 2024 academic year, the union said.

‘NSFAS is on autopilot’

Spokesperson Asive Dlaniwa warned that things are worsening at NSFAS after it missed the 1 October deadline for applications for 2024 financial assistance.

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“We informed students and the country that the entity faced an imminent collapse after failing to pay allowances on time in August.

“We now regret to inform the nation that things have regrettably further degenerated at the scheme since then.”

“Up until today, applications for 2024 still haven’t opened and there is absolutely no direction as to when this will happen,” Dlaniwa said in a statement.

Furthermore, thousands of students haven’t received responses to their appeals, some of which date back to February 2023.

“We have seen what can be argued to be a governance and executive collapse in the last few weeks with protracted feuds between the executive and the board in the media.

“It would appear that the sector is generally on autopilot, and whilst that is unfortunate, what would be most regrettable and calamitous would be the absolute collapse of NSFAS,” he said.

Dlaniwa called on the government to intervene urgently.

READ MORE: No jail time for Nsfas thief Sibongile Mani, court rules

New funding model

Meanwhile, Deputy President Paul Mashatile on Friday in Parliament announced a proposed new NSFAS funding model that would accommodate the “missing middle”.

He added that investigations into problems surrounding the direct payment system and how the service providers were appointed are underway.

The R50 billion public funding scheme recently left students stranded due to problems with its direct payment system.

Allegations of corruption in the NSFAS direct payment system emerged, leading to the dismissal of CEO Andile Nongongo last month.

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