NSFAS failures foils loan scheme

22 August 2024

The DA welcomes the parliamentary portfolio committee on higher education’s decision that the National Student Financial Aid Scheme (NSFAS) must submit a monthly report to Parliament.

This after yesterday’s briefing at the NSFAS offices not only revealed continued human resources constraints and inadequate information and communication technology (ICT) systems that affect application and appeal processes, but also that the R3.8 billion loan scheme to support missing middle students might not be realised.

The loan scheme was meant to provide funding for nearly half of the students in the missing middle category – nearly 32 000 students – as part of its first phase.

However, the committee was informed that of more than 31 000 applications received, only about 1 300 applicants qualified for the loan scheme – and they have yet to be funded months after successful application.

It seems that NSFAS’ ICT systems are unable to handle loan applications and that these applications are largely manually processed at the moment.

The Department of Higher Education expressed their frustration at the fact that there had not been development of the ICT system despite promises from former CEO Andile Nongogo that there was progress on implementation of a new system after National Treasury provided and funded the use of ICT specialists and consultants to the tune of R136 million. It now seems that NSFAS is unable to account on how the money was spent.

Furthermore, NSFAS’ poor financial management and failure to submit their annual and closing reports have also hampered the funding of the loan scheme.

Philanthropists approached by the Department to form public-private partnerships were unwilling to collaborate with NSFAS due to unavailable financial records.

NSFAS’ fumbling of the loan scheme is unacceptable. Thousands of students have placed their hope in this scheme to access higher education and change their futures.

It is time NSFAS makes the development of the loan scheme and the upgrading of the ICT system a priority.

Statement issued by Matlhodi Maseko MP - DA Spokesperson on Higher Education, 22 August 2024