Those who do not sign can lose funding

STUDENTS funded by the National Student Financial Aid Scheme who have not signed their loan agreement forms have until May 31 to do so, or they risk losing their funding.

More than 63 500 students who received funding have not yet signed their loan agreement forms and are urged to do so at their respective universities and TVET (Technical Vocational Education and Training) colleges as soon as possible, the NSFAS said yesterday.

Scheme spokesman Kagisho Mamabolo said as of May 4, more than R179-million was disbursed to students who are approved for funding and have signed their agreement forms.

The allowances are for food, accommodation, transport and books.

Mamabolo said the affected students could possibly face retraction of NSFAS funding if they failed to honour their funding obligation, even though they were approved for this year’s funding.

“The NSFAS terms and conditions state that the loan amount recorded in the loan agreement will be paid as a credit to the student account with the university – for the academic, residence, student levies and other similar cost of pursuing the course of studies for which the student is registered. No loan advance will be made unless the loan agreement has been signed,” said Mamabolo.

“It is our responsibility, as stated in the National Credit Act that prior to entering into any credit agreement with a consumer, we must conduct a detailed financial assessment on behalf of the client.

“We are appealing to the students to do their part and sign the agreements for their own benefit.

“We ensure that our students understand the risks, costs and obligations created by the financial assistance they are receiving.”

Mamabolo said signing an agreement was compulsory and common practice for any institution that provided financial assistance.

He warned that the NSFAS would not process any tuition payments for students who did not sign their agreements.

Students can sign their agreement forms at their respective universities and TVET colleges or visit the NSFAS website, www.nsfas.org.za, and click on the “SIGN YOUR LAF/SOP” link. —