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The 2023 NSFAS University Allowances Onboarding Process



The 2023 NSFAS University Allowances Onboarding Process

The 2023 NSFAS University Allowances Onboarding Process. In 2023, the National Student Financial Aid Scheme (NSFAS) implemented a new direct payment system for student allowances. This significant change in the disbursement of allowances has raised several questions and challenges.

NSFAS Direct Allowance Payment System Introduction

The NSFAS introduced a direct allowance payment system to empower students with control over their financial support. This introduction garnered substantial attention, and the Minister of Higher Education was asked to provide an update on its implementation.

Communication with Institutions

Minister Nzimande explained that institutions were informed of the implementation in line with the 2023 NSFAS Eligibility Criteria. This included a minimum three-month notice period to institutions before NSFAS took full responsibility for allowance payments.

University NSFAS Bank Account Onboarding

On March 3, 2023, NSFAS informed universities that the direct allowance disbursement would commence on June 1, 2023. A subsequent notice on May 26, 2023, clarified the first direct payment date at the end of June 2023. Students were encouraged to onboard themselves onto the NSFAS bank account system, facilitated by partnering with fintech service providers.

Onboarding Process

Students were required to register with the designated fintech partner associated with their institution. Failure to do so would result in students not receiving their allowances. By the end of June 2023, 24 universities successfully onboarded to the direct payment system, ensuring their students received allowances via direct payments.

Challenges Faced

The transition to the new direct payment system encountered several challenges. These included cyberattacks, resistance from institutions, incorrect allowance payments, and high bank charges. Cyberattacks prompted enhanced cybersecurity measures. Resistance necessitated ongoing engagement to address concerns and emphasize system benefits. Incorrect allowances led to the introduction of an adjustment window, while concerns about direct payment charges resulted in negotiations.

Termination of Service Provider Contracts

The NSFAS is set to terminate contracts with service providers involved in the direct payment of student allowances. An investigation into potential conflicts of interest led to this decision. The investigation found possible relationships between key individuals, including CEO Nongogo, and the fintech companies appointed to facilitate allowance payments.


The implementation of the 2023 NSFAS direct payment system has brought significant changes and challenges to the student allowances onboarding process, with ongoing efforts to address issues and ensure a smoother transition.

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