NSFAS tracks down working beneficiaries

By Drum Digital
12 November 2015

In a bid to deal with non-repayments of study loans, the National Student Financial Aid Scheme (NSFAS) has come up with strategies to track down the working beneficiaries who have outstanding loan repayments.

By Nomzamo Ngcobo

NSFAS spokesperson Kagisho Mamabolo says that the board has put these strategies in place in collaboration with other entities to recover money from the beneficiaries who are gainfully employed, and can give positive consent for deduction from their payroll or make other acceptable arrangements.

The NSFAS has contracted two companies: one will make collections on behalf of public sector and the other on behalf of the private sector. They’re working with government entities to track the debtors and they’re able to access all those that are working for government and those employed in the private sector and paying tax. Beneficiaries who fail to make repayments might face legal actions.

Through this collaboration, NSFAS is able to confirm employment details and contact beneficiaries to arrange repayments. They have secured 566 new debit orders of about R300 000 per month in the public sector, and about R2,8 million in salary deductions in the public sector.

Mamabolo says that the repayments of student loans are based on the salaries that working beneficiaries earn, and the beneficiaries start repaying once their salary is R30 000 or more per year. The payments start at 3 % of an annual salary, increasing to a maximum of 8 % when a salary reaches R59 300 or more per year. This means that a student earning R30 000 a year will pay back R900 a year, or R75 a month.

“We’ve gone as far as getting employers agreeing to enter into an agreement with NSFAS by buying the debt. The process is ongoing and it’s at advanced stages,” explains Mamabolo.

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