On Thursday, Higher Education Minister Blade Nzimande announced the dissolution of the National Student Financial Aid Scheme (NSFAS) board, citing the need to improve the organisation’s efficiency and focus on its core mandate.
Why did Blade Nzimande dissolve the NSFAS board?
Minister Nzimande revealed his decision to dissolve the NSFAS board with immediate effect during a recent meeting aimed at reviewing the organisation’s operations.
This move follows the acceptance of Ernest Khosa’s resignation as the chair of the NSFAS board.
The government will further detail the legal aspects of this dissolution in a government gazette set to be published soon.
Minister Nzimande plans to provide more insights into his decision and the expected steps to address the organization’s future this Sunday.
Will this impact student funding in 2024?
Despite the upheaval in governance, the Higher Education Department assures that student funding will not be impacted.
NSFAS has already disbursed R2.8 billion to universities for student allowances in January 2024, covering accommodation and books for a month.
With the tranche payments scheduled for April, the department emphasised that the administration change will not affect the ongoing or future payments to students.
As of early 2024, NSFAS had received over 1.93 million applications for funding, with approximately 1.24 million students provisionally funded.
While 243,113 applications were rejected, there are 15,174 appeals currently under consideration.
What happens after the NSFAS board is dissolved?
Following the dissolution of its board, NSFAS will enter a period of administrative transition. Typically, the organisation will be placed under temporary management while a new board is constituted.
This interim administration phase is designed to ensure that NSFAS continues to function smoothly, focusing on its mandate without interruption.
The process involves closely monitoring the organisation’s administrative and financial activities to maintain transparency and efficiency during the transition.