Direct payment model here to stay as NSFAS applications open

Higher Education, Science and Innovation Minister Blade Nzimande has reaffirmed government’s commitment to its student-centric model of direct applications and payments despite the corruption scandal in the selection of allowance-payment partners.

Nzimande said the National Student Financial Aid Scheme (NSFAS) does not intend on reverting to the old model.


“We do not intent to go back to giving institutions money. Let students apply directly to NSFAS,” said Nzimande.

He said the integration of all public universities and technical and vocational education and training (TVET) colleges to the student-centred model wherein students apply directly to NSFAS for funding was one of the notable milestones of the scheme.

Nzimande said though there are challenges with NSFAS’s direct payment system, but noted it is still the best payment model to disburse funds to 1.6-million students.

He was speaking in Pretoria to announce that the NSFAS applications period officially opened on Tuesday and will close on January 31.

“The reason we are opening the application period now is that NSFAS was awaiting SARS [SA Revenue Service] completion of the tax period which is very important to enable NSFAS to have necessary and updated information available during the application season.

“Furthermore, this is done to afford the beneficiaries shorter turnaround times for decision-making which is aligned to NSFAS financial eligibility assessment, which requires updated SARS information,” he said.

Sassa beneficiaries

Appealing to students not to wait for the last minute to apply, he said NSFAS has been improving its application process and ensuring quick turnaround times on funding decisions.

“I implore all students who wish to study in any of the public universities and TVET colleges to apply timeously and not to wait until the last day.

“Students don’t have to wait for matric results in order to apply for NSFAS,” he said.

He said NSFAS will continue to make immediate funding decisions for first-time applicants who are SA Social Security Agency (Sassa) beneficiaries

“In 2023, the scheme continued to fund Sassa beneficiaries in real time. This year, Sassa beneficiaries account for 35% [526 970] of the funded students,” he said.

He, however, reminded students they still need to be registered first in a public university or TVET college for a funded qualification to get confirmation for the funding.

Improved verification processes

Nzimade said he was pleased to hear that as part of improving the services to students, the 2024 applicants will not be required to submit supporting documents at time of application.

“The reason for this is due to our improved third-party relations. These third parties include Sassa, SARS and the Department of Home Affairs.

“They will be providing NSFAS with information to verify what the student would have declared in the application.

“The only time supporting documents will be required is when prompted by NSFAS in case where they cannot verify the parental relationship. Communication will be sent directly by NSFAS to a student to initiate this process,” he said.

He said disabled students will be required to submit the disability annexure form because they are assessed at the R600 000 threshold instead of the maximum R350 000 that applies to other NSFAS applicants.

“I therefore urge students to provide accurate information, particularly parental information when applying, so that when validations occur with Home Affairs students can be funded timeously.

“NSFAS will reject or request additional supporting documentation where validations with third parties have failed,” he said.

He said all first-time applicants will be able to appeal as soon as they are rejected.

“However, the returning students and continuing students will only be able to appeal from the end of November, as NSFAS is still improving the processes so that students have multiple reject reasons and appeal at once instead of the current process where they have been rejected at different points in the funding value chain,” he said.

Funding policy for 2024

Nzimande said NSFAS has committed that all appeals and outstanding allowance will be finalised by the end of 2023.

He said the proposed 2024 funding policy will be issued by the end of November.

“The funding policy will cover the eligibility criteria and student allowances,” he said, adding that he hopes the policy can be reviewed every two years to bring some level of stability.

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