‘Too rich for a loan, too poor to pay fees’ – Govt answers News24 users

2015-11-11 10:04
A protester holds up a placard indicating his opinion on NSFAS during an EFF march in Johannesburg. (EWN, Twitter)

A protester holds up a placard indicating his opinion on NSFAS during an EFF march in Johannesburg. (EWN, Twitter)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town - Almost a third of respondents to a survey by News24 on the National Student Financial Aid Scheme (NSFAS) say their biggest stumbling block was their family's income threshold.

Over 1 000 respondents shared their grievances on the scheme’s biggest problems, from a lack of communication, to late fund releases, to allegations of bias and corruption.

Of the respondents, 30.6% mentioned the income threshold, while 31.9% felt that the long-winded process was the biggest frustration.

- Read: Is race a factor when applying for a govt student loan? News24 users think so

We spoke to NSFAS to discuss some of the biggest problems highlighted by News24 users about the government’s student funding scheme.

This is what NSFAS spokesperson Kagisho Mamabolo had to say...

‘I always had to produce proof that both my parents had passed on’

By far the biggest grievance expressed by respondents was the bureaucratic red tape involved in the process.

Students described the paper-based system as “long-winded” and “tedious”, while many took objection to having to provide proof each year that they no longer had parents who could support them.

Mamabolo told News24 that a lot of the process issues existed because of a lack of synchronisation with universities.

“In our old system, students applied through the universities.

“Sometimes the university doesn’t have the capacity to capture data as well. We find that especially at colleges, like Tshwane North.”

He said NSFAS needed the universities to submit their claims by the end of each financial quarter. If they failed to do so, the organisation’s hands were tied.

New system as of 2014

When pressed about the government’s plans to address that disconnect between the institutions and NSFAS, Mamabolo said a new system had already been implemented.

“In our new system you apply through us directly. This has been the second year where students apply through us. We have 11 institutions on board already.”

- INFOGRAPHIC: What News24 users said about govt student loans

He said the new student-centred model was not a response to the #FeesMustFall protests, and funding will now be given for the duration of students’ degrees, and not on a year-on-year basis.

He also hopes the new system will solve the problem of students having to rehash that “they are poor”.

A R2.9bn contingency fund was set up to cover the longer duration of funding.

‘I was never told if I was successful or not’

A lot of the problems came down to simple communication between NSFAS and students, and NSFAS and universities.

Mamabolo said the challenges of communication lies with something as simple as a ‘working cellphone’.

“You can’t get anything without a cellphone, so you’re obliged to have a one,” he continued.

“The problem is a working number. On a regular basis, we will send SMSes, emails and use campus radio to communicate.

“But we can’t always get hold of students. Sometimes, they’ve used their parents’ phone from home, who live in other provinces.”

Mamabolo said NSFAS is hoping to launch a centralised website, called MyLogin, for students to access their own information by early January 2016.

The cellphone method will continue to be used in the new system.

‘It is biased, only certain people are chosen’

Many students labelled the process at certain institutions as “corrupt” and “biased”.

One student even accused officials at the University of Limpopo of choosing candidates on the basis of attractiveness.

“Once again, we can’t control what happens at every university,” Mamabolo said.

“Those employees work for the universities. NSFAS only has one office in Wynberg.

“We had similar problems in the system as well, and the minister [Blade Nzimande] has announced a forensic audit into the allocation of funds."

The corruption report will sample six institutions, and will investigate how the universities allocated the funds, to determine if that has been any evidence of fraud, corruption, maladministration and collusion. 

Mamabolo also added that the new NSFAS system will minimize the risk of human error and possible corruption.

‘I felt they did not want to give me funding because of my race’

- For this answer, read: Is race a factor when applying for a govt student loan?

 ‘I couldn’t graduate, my funds were late’

- For this answer, read: 11% of students won’t pay back NSFAS loan - survey

 ‘Interest rate is too high’

“Our policy is that while you study we don’t charge interest. We also don’t collect, you’re not obliged to repay until only once you start working,” Mamabolo said.

“Once you’ve gained employment, if you earn an annual salary of R30 000 [or more], we ask for a repayment of 3% to 8%.”

After the first 12 months following a student’s graduation, interest starts getting charged at 4.6%.

Institutions run a workshop where students are essentially told what they are getting themselves into, he said.

“It is compulsory. You have to understand the form, you need serious documentation. You can’t just sign.

“But the future is in your own hands as a student. If you need funding, you’ve got to attend the workshop.”

Read more on:    nsfas  |  blade nzimande  |  cape town  |  education  |  university fees

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Financial advisors – Do you need one and should you get one?

The good, the bad, and everything else you need to know when considering hiring a financial advisor.


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.