Education’s Price Tag: Inside the struggle for NSFAS and Coinvest

NSFAS Mastercard | www.nsfas.org.za

The National Student Financial Aid Scheme (NSFAS) introduced a new system for university students in June 2023. This new system was implemented following an announcement by the Minister of Higher Education, Blade Mzimande, in September of the previous year. He asserted that this direct payment system, devoid of any third-party involvement, would benefit students and enhance their financial freedom.

Concerning Rhodes University, beneficiaries of NSFAS will now receive their allowances through Coinvest Africa. It has come to light that Coinvest, along with eZaga, Norraco, and TeneTech Technologies, are relatively young and inexperienced companies that won the bid. Unfortunately, this decision has resulted in unforeseen negative consequences, including cases where Rhodes University students have not received their allowances for two months. Nozi, a Rhodes University student residing on campus, expressed, "Coming from a struggling family, acquiring money becomes a challenge. Last month was better due to our previous arrangement, but this month is proving to be worse. Even at the start of the month, attending classes is difficult. My circumstances forced me to opt for cheaper cosmetics, although some of them irritate my skin."

Blade Nzimande by Simone Kley

Philile, another student grappling with NSFAS and Coinvest challenges, reports that she is currently not registered in the system. She believes that if she were not an on-campus student, she would likely face the same fate as her off-campus peers. She added, "While it's just R300, it helps more than we realize. Sometimes, I have to stay on campus between classes, which means I can't have lunch due to the timing of my classes. This money really comes in handy in such situations."

 

Coinvest Card | www.coinvest.africa

Certain students explain that while the funding issues have significantly impacted their lives, the most disheartening aspect was going without their allowances for two months. Furthermore, some students feel overlooked as NSFAS and Coinvest seem to focus solely on off-campus students. They are of the opinion that they do not receive adequate assistance or sufficient information about the ongoing problem. Neither Coinvest nor NSFAS provides notifications or details about the timing of allowance disbursement, the new banking system, or associated charges.

The absence of allowances has also led to off-campus students (Oppidans) being unable to cover accommodation expenses, leaving them without proper housing. Cat, an off-campus student at Rhodes University, shared, "When the university reopened, I had to stay home for the entire week, missing out on my schoolwork." The failure of the NSFAS system to provide monthly allowances to off-campus students not only impact their housing situation but also leaves them unable to afford essentials like food.

 

Defunding is an additional issue that students have been confronted with. Defunding is defined as a strategy aimed at creating space for other students in need of financial aid; however, it has resulted in devastating consequences for its recipients due to inadequate communication between NSFAS and higher education institutions. The social media pages of Rhodes University have transitioned from being platforms for humor and jokes to becoming channels for disseminating information and making inquiries regarding how to navigate defunding.

 

This transformation has proven beneficial for numerous students, as they can now access information without enduring lengthy waits at financial aid offices. Additionally, this shift has alleviated the burden on administrative staff who often lack clarity regarding changes and new systems implemented by NSFAS.

 

The new direct payment system implemented by NSFAS has resulted in reduced financial freedom for students. Across universities in South Africa, students continue to endure financial hardships caused by this system.

Credits:

 

Written by: Asa Makhonza, Abukwe Mjungula, Ndalo Mbombo, Phiwokuhle Mvalo, Sinothando Ngema

 

Translators: Asa Makhonza, Abukwe Mjungula

 

Editors: Thandeka Mosia, Courtney Meiklejohn

 

Final Design: Mzwakhe Nhlabathi