Nsfas begins the axing of four service providers – Here’s how it will affect your allowance

The National Student Financial Aid Scheme (Nsfas) on Monday announced it had started legal proceedings to cut the contracts of four service providers.

The scheme’s administrator Freeman Nomvalo said court papers were filed last week to do so.

A recent report by Werkmans Attorneys implicated direct payment service providers, namely, Ezaga Holdings, Coinvest Africa, Norraco Corporation, and Tenet Technologies.

Papers filed in court

The scheme followed this up, working with the Special Investigation Unit (SIU), to begin the process of ending the service providers’ contracts

“Through our lawyers, we have communicated this decision to all the direct payment services providers today.”

ALSO READ: Do we really need Nsfas?

Nomvalo said the scheme had “made significant progress in subjecting all implicated NSFAS employees in the report to appropriate disciplinary action”.

He said it was also considering criminal charges against those implicated, where appropriate.

What happens to my allowance?

Nsfas said it would work with universities to make sure students get their monthly allowance amid the terminations.

“To keep up with the payment of monthly allowances to university students, universities were asked to assist with these processes until the end of July 2024.

“This payment arrangement underscores the schemes commitment to students to receive uninterrupted monthly allowances with precision and without delays.

ALSO READ: ‘Nsfas corruption allegations a matter of concern’ – Ramaphosa

“In our conversation with universities, the need for the smooth and efficient reconciliation between NSFAS and institutions is critical. This is the case for the payment already made and the future payment.”

Straight to bank accounts

The scheme said it would pay those in TVET colleges directly.

“We have requested all TVET students who do not have bank accounts to open the bank accounts with banks of their own choice to avoid delays in the payment of their allowances.

“In terms of the data received thus far, a total of 211591 students bank accounts have been verified and a total of 7160 failed the verification checks, for various reasons including bank accounts that do not belong to students, for example, a parents bank account.”

NOW READ: ‘The entire Nsfas board should resign’