Important statement on NSFAS to the National Assembly by Minister Naledi Pandor

11 September 2018

There has been growing public concern at the inability of the National Student Financial Aid Scheme (NSFAS) to efficiently administer the processing of applications and the disbursement of funds. These concerns did not begin this year. They have existed for several years. The public, higher education institutions and students are right to be concerned. Given the important role NSFAS plays in ensuring the transformation of the human resource profile of South Africa. Since its inception, NSFAS has ensured that funds are made available to thousands of young people from poor and working class backgrounds. It supports their access to and success in higher education. Efficient administration and the disbursement of funds, are essential for ensuring that young people benefit from this critical support for the skills development of SA’s youth.

Honourable members are aware that we have had serious concerns about NSFAS for several years. In 2013 NSFAS introduced a new "student centred model" for applications and disbursement. This created a direct link between students and the NSFAS and bypassed institutions. The model was piloted for two years in five universities and 14 colleges. It was later expanded to all institutions in 2017. At the beginning of 2017, the scheme experienced a breakdown of its computer systems and processes. Various processes of the scheme had to be undertaken manually. The absence of data and systems integration worsened the problems. Due to these difficulties, many 2017 processes were incomplete by the end of 2017. Many applications were not finalised, and funds were not disbursed. 2018 began with this backlog. NSFAS was confronted with inadequate systems processes. Additionally, staff had to administer the new full-bursary programme that introduced free higher education for poor and working class first year students.

The DHET began to work closely with NSFAS from early January. This was in an effort to address the changes and deal with the backlog of 2017. The board also provided extensive hands-on support to NSFAS. In February, I was alerted to the backlogs. The fact was that many institutions were owed funds while thousands of applications had still not been processed. It became clear that the problems were very severe. I have always received full support from the Board, and Mr Nxasana. Following various Board attempts to intervene and assist, and even with support from DHET, the board and ministry agreed that extraordinary measures were warranted. I appointed a support team of DHET and institutional staff for a six week period. This was to support the processing of applications and to ensure disbursement. This team made some progress in resolving some of the backlog. However, it became clear that much more was needed.  

Following the board chair informing me of his immediate resignation in August, I decided to seriously consider the appointment of an administrator. An emergency board meeting affirmed my intention. Indications were that the board had intended to propose the appointment of an administrator. I was also requested to do so by unions represented in NSFAS and by student organisations at TVET colleges and universities. 

In late August Dr Randall Carolissen was appointed as administrator for a period of twelve months. I have directed that he should urgently ensure eligible students receive funding for 2017 and this year. That he should develop a viable plan for processing applications for 2019 and ensure stability and efficiency at NSFAS. We have secured staff secondments from universities and TVET colleges to support the administrator. The administrator will add capacity to this support team as the work progresses.

There has been positive progress in the first two weeks since the appointment of the administrator. Links have been re-established with all institutions and institution heads and student leaders have played a critical role in communicating with students. Over fifty NSFAS staff have been deployed to be on site at institutions to ensure the resolution of outstanding issues. In the process, an additional 50 000 students have been identified as falling within the criteria for NSFAS support.  

In the first eight days of the administration, R2.2 billion had been disbursed. 43 925 students have signed outstanding SOPs and been confirmed for payment. In terms of outstanding SOPs the largest number of unsigned contracts is that of TVET college students. Over 30 000 TVET college students who are confirmed beneficiaries have not signed or received their funds. We appeal to them to come forward. UNISA students have also been paid the outstanding book allowances. I am pleased to indicate that in this year of introducing free higher education, over R17 billion has been disbursed to universities and TVET colleges.

I wish to assure honourable members that the matter of the chief executive is a NSFAS matter that must be addressed by the administrator and not the minister or DHET. The immediate work of NSFAS is the close out of 2017 and 2018 and the successful opening of the 2019 applications. NSFAS will thereafter focus on systems and processes that will create an effective model for the future. We have opened 2019 applications, and have announced 30 November 2018 as the closing date. We have also requested universities and colleges to encourage students to apply and to support NSFAS in the turnaround.

Once the immediate challenges have been fully addressed, the administrator will focus on identifying the root causes of problems at NSFAS. Solutions and a roadmap will be developed to address them. We anticipate a significant business redesign which should be put in place after the 2019 registration period. The steps taken by the administrator thus far have signalled that it will be possible to achieve significant improvement in the administration period.

The National Student Financial Aid Scheme (NSFAS) Online Applications for 2019, which opened on the 3^rd of September, went smoothly and without any technical glitches. By 10h00, more than 400 new applications had been successfully submitted. More than 8 000 users had already visited the NSFAS website to learn more about the application process.

New students and returning students, without NSFAS registration, should apply online at www.nsfas.org.za immediately and not procrastinate. The new application process takes only five minutes to complete. It requires only a copy of the Identification Document (ID) for the applicant and parents; a payslip of each parent earning an income, and; a consent form to give NSFAS permission to verify income. Applicants whose parents are unemployed, are only required to submit a signed consent form. Continuing students who are funded by NSFAS this year, will be contacted by NSFAS to sign their agreements online, if they have not done so already. They are not required to re-apply as their funding will automatically continue in 2019, if they meet the progression rule of attaining a 50% pass. From 17 September 2018, applicants can also submit their paper applications at the nearest NYDA Office, anywhere in the country. Here they will be assisted by an NSFAS official to capture the application. Public Universities and TVET Colleges will also be capacitated to assist with both online and paper application forms at the institution's Financial Aid Office.

NSFAS Administrator, Dr Randall Carolissen, says that the newly improved system allows each applicant to be considered with great care. Enormous attention is given to evaluating every application. Therefore, the first applicant will also be the first to know whether they are funded or not. “Each application will be treated equally by the NSFAS funding committee. Complete and submit your application material as soon as possible. This will ensure full and timely consideration of your application. There are tips and guidelines online and a YouTube channel for step-by-step information. You can also track and trace the progress of your application online by a simply login with your cell-phone and ID number. “The on-time opening of the 2019 applications had been prioritised. However, we first provided assurances to the Minister regarding our progress on the 2017 and 2018 backlogs before opening the window. In that regard, we have successfully paid more than R1.2 billion to institutions and students in less than a week. We have also sent remittances to every institution to ensure that money is allocated to students accordingly and without delays. I am happy that this positive progress has been welcomed by vice-chancellors, college principals and SRC’s,” Dr Carolissen said. More NSFAS officials will be deployed to institutions in the immediate future to support the application process and to continue assisting applicants. For their part, each applicant should have a working contact number that NSFAS will use to communicate throughout the process of evaluation and for communicating the funding decision. Should this number change, it must be updated online immediately or via our TOLL-FREE number 08000 67327.

A consent form is compulsory for every applicant. Without this, NSFAS may not verify any income as declared by an applicant. This may prevent the conclusion of the funding decision. No one is restricted from applying. However, funding will only be disbursed to those who have confirmed offers and/or secured admission to study in 2019.

NSFAS applications for the 2019 academic year to open on Monday 3 September 2018

The Minister of Higher Education and Training, Naledi Pandor is pleased to announce that the 2019 National Student Financial Aid Scheme (NSFAS) applications for new applicants, will open on Monday, 3 September 2018.

The announcement follows a meeting between the Minister and NSFAS Administrator, Dr Randall Carolissen. The decision to open the applications was taken after a process of system testing. The system tests on access and user friendliness conducted on the 2019 applications of a focus group of high school learners, yielded positive results. NSFAS has additionally, put in place a comprehensive communications plan. The plan involves partnering with institutions of higher learning and training, the National Youth Development Agency, community structures and organisations. This is to ensure that all eligible existing and prospective students are reached.

Once a student has applied to NSFAS, the maximum waiting period before the student receives a notice of acknowledgement is set at one week. Should a student not receive the acknowledgement within this period, they are requested to call the NSFAS TOLL FREE Call Centre on 08000 NSFAS (67327). Regarding the progress made in resolving the NSFAS issues, the following steps have been taken. NSFAS has deployed staff to all institutions to facilitate a process of addressing the bottlenecks that may have resulted from a range of factors. The necessary funds are available. Steady progress is being made in awarding the student support to qualifying students. NSFAS has welcomed the enormous support of Universities and TVET Colleges and their Student Representative Councils, in clearing the bottlenecks in the disbursement of funds. This support has assisted NSFAS to ensure that students have completed and signed the necessary agreements; that these agreements, and the student’s Course codes have been accurately captured by the institutions and submitted to NSFAS; and that book allowances, s-Bux, and pre-funded student details are correctly captured and matched with NSFAS records.

In this regard, of the 273 000 2018 academic year first-time entering students at TVET Colleges and Universities, a total of 211 000 have received the relevant funds. Furthermore, close on 239 000 of the 241 000 returning students, have been successfully linked to the system. Students are urged to sign outstanding NSFAS Bursary Agreements. This will ensure, in the case of those that meet the academic requirements, that the decisions for the continuation of their funding for the 2019 academic year, proceeds smoothly. The Minister is confident that the remaining outstanding payments for the 2018 academic year, are being made as rapidly as details are captured and verified. Minister Pandor calls on all students to ensure they inform NSFAS of changed contact details. Particularly cell-phone numbers, as this is the primary communication tool used to inform students of the disbursement of funds. MyNSFAS Online portal is available for students to update their details instantly online.

All institutions of higher education and training will be capacitated to assist with the 2019 academic year NSFAS applications. The Minister also requested students who are receiving their backdated funds, to use them wisely and settle outstanding arrears and then to focus on their studies.

Minister Pandor appoints Dr Randall Carollissen as NSFAS Administrator 

17 August 2018 

The Minister of Higher Education and Training, Naledi Pandor has announced the appointment of Dr Randall Carollissen as the Administrator for the National Student Financial Aid Scheme (NSFAS). Dr Carolissen is appointed to NSFAS as Administrator for a period of one year. He will be responsible for the governance, management and administration of the entity. The appointment will be effective from the date of the publication of a notice in the Government Gazette, which is likely to be early next week.

Dr Carolissen is currently the Group Executive: Revenue Planning, Analysis and Reporting at the South African Revenue Services. He is also Chairperson of the Council of the University of the Witwatersrand. A week ago, Minister Pandor, met with the Board of the National Student Financial Aid Scheme, following the resignation of its Chairperson. This followed several months of engagement with the Board and the entity, in the light of serious delays in the funding of students at TVET colleges and universities in 2017 and 2018. Following the meeting, the Minister announced that she would be appointing an Administrator to take over the management, governance and administration of NSFAS in terms of Section 17A to 17D of the National Student Financial Aid Scheme Act (Act 56 of 1999, as amended). The Board concurred with the Minister on the need for the appointment of an Administrator. Minister Pandor highlighted Dr Carollissen’s leadership and management experience. He has high level technical skills and his understanding of the South African Higher Education and Training landscape, are seen as key attributes in selecting him for this role. “I wish to thank him for agreeing to take on this critical and important task. I also thank the South African Revenue Services, and the Minister of Finance for agreeing to release Dr Carollissen”, Minister Pandor said. Dr Carollissen will be supported by a team of experts in areas such as financial aid, human resources, information technology, business systems and change management. The Administrator’s responsibilities will be clearly outlined in the Terms of Reference for the Administrator to be set out in the Government Gazette.

The immediate focus for the Administrator, will be to ensure the effective closeout of the 2017 and 2018 student funding decisions and disbursements. As well as to urgently finalise plans for the 2019 funding cycle. Over the next few months the Administrator will work with universities and TVET colleges to ensure that student funding for the 2019 academic year works smoothly. In her first meeting with the administrator, Minister Pandor urged Dr Carollissen to prepare for the opening of 2019 applications in September 2018. A review of the NSFAS student-centred model will be undertaken over the next few months and run parallel with the term of the Administrator. This process will provide recommendations for the long term improvement of NSFAS. The aim is that it can effectively carry out its mandate and ensure that students from the poor and working classes, are effectively supported to succeed in their studies.

The Minister also thanked the current NSFAS Board members, and new Chairperson, Professor Garrod, for their commitment to support the entity during the transitional period. The current Board is dissolved as from the date of the publication of the Gazette.