NSFAS introduces cash allowances

National Student Financial Aid Scheme (NSFAS) funded students will now have to become financially savvy as their allowances for food, rent and textbooks will no longer come in a voucher but in the form of cash.

Earlier this year NSFAS announced that the scheme would be paying allowances directly to students’ bank accounts instead of the voucher system known as “Sbux”, which was previously administered by third-party organisations.

NSFAS spokesperson Kagisho Mamabolo said this was to ensure that accurate payments to students and universities happen timeously.

The announcement comes as

Walter Sisulu University

a(WSU) student, Sibongile Mani, faces a criminal theft trial in connection with an erroneously transferred amount of R14m into her student account on June 1 2017 by NSFAS.

Mani, 29, then a second-year accounting student, was supposed to receive her monthly R1,400 meal allowance, but somehow, when it arrived it was R14m.

“NSFAS-funded students will receive their allowances through their bank accounts, directly from universities and technical and vocational education and training (TVET) colleges,” said Mamabolo.

The monthly allowances consist of R1,440 for food inclusive of a R275 personal allowance, a maximum of R3,100 for accommodation for students in private residence and R1,000 for transport. There is also a onceoff R5,000 for books.

Mamabolo said over R3bn was advanced to universities that complied with the preconditions in a memorandum of understanding and a further R218m to TVET colleges.

The student representatives at two Eastern Cape universities, University Fort Hare (UFH) and WSU welcomed the move and urged students to use their money wisely.

UFH’s SRC president, Xolani Jaji, said while there were concerns that there was no form of regulation to ensure that students spend the money on what it was intended for, the onus would be on them to do the right thing.

WSU SRC member Samkele Mqai said the decision by NSFAS was a favourable one and students hoped the new method would make the allowance transfer process smoother and reduce delays.