National Student Financial Aid Scheme (NSFAS) administrator Freeman Nomvalo has blamed their failing ICT systems for what he called a looming “defunding” debate that was on the cards in the sector.
However, the scheme is hopeful that a newly envisaged system can improve administration including the management of applications.
Nomvalo was speaking at a media briefing on Tuesday where he provided an update on governance and administration issues and projects that have been launched.
“Having completed the first quarter of our term, we have also successfully completed the initial drilling exercise under very difficult circumstances. The outcomes are very worrying and alarming, the current ICT architecture and business process at NSFAS are not fit for purpose. The so-called ‘defunding’ debate that is looming in the sector is a direct product of a failing ICT system.
“This has presented far-reaching implications for the stability of the system. The conclusion of the ICT and Business Processing Review project will deliver a more efficient ICT system that provides for a seamless interface and data sharing between NSFAS and its key stakeholders including universities, TVETs as well as accommodation providers (APs),” said Nomvalo.
In 2023, NSFAS received about 2 million applications. Nomvalo said it was almost impossible to expect staff to manually conduct verification of these applications.
“Such a work environment is undoubtedly prone to errors. The delays in finalising student appeals, loans and the 2023/2024 funded lists was directly connected to the current NSFAS ICT system. The only default position at this stage is to constantly introduce a manual process of verification which is completely cumbersome and overstretching staff.
“We are happy to announce that with additional capacity acquired, we will be communicating on final lists.
On behalf of NSFAS we wish to express our sincere apologies to the affected students and our colleagues in the post-school education and training (PSET) system. We are working hard to ensure the 2025 academic year is less burdened by the same issues,” he said.
At the beginning of the administration period, there were 88 000 unresolved NSFAS appeals. As of last month, these were reduced to 27 000.
NSFAS currently has around 4 000 appeals pending resolution. However, the number of unresolved appeals fluctuates as new appeals are submitted.
Nomvalo said all NSFAS appeal decisions are expected to be communicated to students before the end of August 2024.
In terms of payments, he said they took a decision to extend the current arrangement with universities facilitating payment of allowances to NSFAS beneficiaries until the end of the 2024 academic year.
“Our intention is to also migrate the university allowances to a more cost effective and efficient payment system. The planning for the migration of universities was halted by the interdict awarded in favour of Ezaga and others by the Western Cape High Court on which NSFAS is appealing,” Nomvalo added.
Cape Times