Dear Students,

The National Student Financial Aid Scheme (NSFAS) or rather National Student Failing Aid Scheme has recently introduced their new so-called "direct" payment system for the distribution of student allowances. The Minister of Higher Education Dr. Blade Nzimande last year announced this new payment method, suggesting that it would be a more student-centered approach and one that would be more safe and secure to use. 

The experience of students however shows otherwise, with many students suspecting fraudulent withdrawals from their accounts. NSFAS is investigating this matter after it was brought to their attention, read more here.   

What is more worrying is the fact that the companies appointed by NSFAS does not have the necessary paperwork such as banking licenses to operate as Financial Service Providers. In an investigate report by the Organisation Undoing Tax Abuse (OUTA) it was found that none the companies are registered at the Financial Sector Conduct Authority (FSCA).

Note that the Office of the Public Protector is investigating this matter after the SRC lodged an official complaint against NSFAS. 

These are all serious concerns we as students have with this direct payment scheme and we question who is benefiting from this new method. It is however quite clear that it is not the most poor and vulnerable that NSFAS ought to serve benefiting but the companies appointed. 

The Sunday Times reported at the weekend the companies will make millions of rand from the deal. According to calculations — based on the 360,771 university students who have so far been “on-boarded” to the new payment system — the four will score R4.3m a month through the R12 banking fee deduction.

This is unacceptable and we request all NSFAS students to sign this petition to show their disappointment and disapproval with this new system.

We will submit this petition to the Portfolio on Higher Education before they are set to meet NSFAS on 06 September 2023. 

- Stellenbosch University SRC 2022/2023