NSFAS embarked on an on-going, national process to reconcile transactions between NSFAS and institutions at a student level. This process is the Closeout Project. The process is aimed at resolving issues that affect student funding statuses and payments relating to prior academic periods covering 26 universities and all 50 TVET colleges (Source: NSFAS media statement, 29.01.24).
Here is a brief overview of the NSFAS closeout project to assist affected students in understanding the process and outcome timeline.
1. WHAT IS THE CLOSEOUT PROJECT? The purpose of the NSFAS DHET closeout project is to resolve non-payment, under-payment, or NSFAS bursary funding discrepancies, dating as far back as 2017 through to 2022. The closeout project identified students who were eligible for funding and were on the NSFAS funded list, and whose allowances were paid by Stellenbosch University (SU), yet – due to a technical glitch or oversight – the registration data was not processed so the funding was not received by the University from NSFAS. The University is reconciling the data so that NSFAS can consider the payment that is due to SU.
Please note that this is a national issue and it is not only SU that is in this position of administering the closeout project.
2. WHICH ACADEMIC YEARS ARE AFFECTED BY THE CLOSEOUT PROJECT? 2017 to 2022.
3. HOW MANY SU STUDENTS’ DATA IS BEING REVIEWED AND PROCESSED IN THE CLOSEOUT PROJECT? More than 3 000 students over the five-year period.
4. WHEN IS THE CLOSEOUT PROJECT EXPECTED TO CONCLUDE? The process is intricate, with a substantial amount of data to go through in depth, however, the Director-General and the Minister of Higher Education and Training have requested the project concludes by year-end 2024.
5. WHAT HAPPENS TO THE STUDENT FEES ACCOUNT IN THE MEANTIME? Because the process is on-going, the student debt will remain on the Student Fees account until the debt is paid. SU has, however, made provision and concessions for the affected students to register for their 2024 study programme on the assurance from NSFAS that it will settle the amount due to SU. Please note this does not mean the debt on the Student Fees account is fully covered: the closeout project only covers the cost of attendance as determined by NSFAS, including allowances as stated in the NSFAS guidelines for affected years; it does not include debt for things like club membership/s, laptops, gym fees, parking, and the like – payment for these remain the student’s responsibility.
Please note that no allowances will be paid retrospectively to a student’s personal bank account.
6. HOW IS THE OUTSTANDING DEBT DETERMINED? Each student’s situation is individually assessed. This is because there are a number of varying factors that are not common across each student’s circumstance within the closeout project. For example, the assessment of the payment of the outstanding debt includes consideration of whether: (i) there is outstanding debt; (ii) the student was eligible for funding in a close-out year; and (iii) the student was eligible for funding in the next and any later years. The answers to such questions decide the outcome of debt on the Student Fees account.
Some monies have been waived over a specified period of time if student was eligible for funding. But, when a student has not been eligible for NSFAS funding (because, for example, not meeting the financial criteria, and/or not meeting the academic criteria, and/or not meeting the N+ rule), then the student will be responsible for the monies owed on the Student Fees account. This is a key point to note and understand.
7. WHAT HAPPENS TO MY 2024 NSFAS FUNDING? If you are a closeout project student, then the debt remains on your Student Fees account until the process is completed, even though you will be able to receive your NSFAS funding and allowances for 2024 based on your eligiblity.
8. I HAVE OUTSTANDING DEBT FROM 2017 (and so am unable to receive my graduation certificate). WHAT NOW? SU does not issue graudation certificates to students with outstanding debt, regardless of the reason for the debt. A letter of completion may be requested, however, the graduation certificate will only be released once the debt has been settled.
9. Can you give me an idea if my outstanding debt will be paid or not? As detailed in question 6 above, every student’s situation is different and thus individually assessed based on NSFAS guidelines and criteria for the years covered in the closeout project. As a guideline, there two basic outcome scenarios: debt is cleared; or debt is not cleared.
Here’s an example where the likely outcome is that the debt is cleared: Student registered in 2018 as a first-year undergraduate on a 3-year study programme. At this time, the 2018 NSFAS guidelines followed the N+ 2 rule. The student completed their studies within the 3 years, and as also continued to be financially and academically eligible across the 3-year period, so the debt will likely be cleared.
Here’s an example where the likely outcome is that the debt is not cleared: Student registered in 2018 as a first-year undergraduate on a 3-year study programme. In 2018, the N+2 rule was in place (allowing the student to complete their degree over a 5-year period). The student completed their degree in 5 years – but because the N+ rule changed in 2019 to N+1 (only one extra year), the student was not eligible for any funding from NSFAS in their fifth year (of completing the 3-year degree). That is, the student was funded from 2018 through to 2021 (four years), but in 2022 the student was not eligible for funding because they exceeded N+1 year rule. NSFAS paid 2018, 2019, 2020, and 2021. In such a case, the debt from 2022 will likely not be cleared.
IMPORTANT NOTE There are exceptions to the above examples, but it hopefully gives you an idea of where you may fit and whether you need to consider sourcing other funding options to pay your student debt.
10. With whom can I follow up about the outstanding debt? Please be assured that CUBL is acutely aware of each student who is in this position and we request that you wait until the end of the year for a resolution. We do understand this can be frustrating. As noted above, we have made concessions for students to register in 2024 with this debt on their Student Fees account.
Updates will be posted here on the Noticeboard tab on a quarterly basis, or when available should we receive feedback from NSFAS, as well as via email to your @sun mailbox. Please check your mailbox on a regular basis, and make sure there are no messages sitting in your spam folder.
11. How will I know when the closeout project is concluded? CUBL will notify each student via email to their @sun mailbox. We envisage this to be by 2024 year-end.