PSA urges NSFAS to implement stricter measures to curb students using allowance to gamble

The Public Servants Association (PSA) is urging the National Student Financial Aid Scheme (NSFAS) to implement stricter financial controls to curb the growing rate of students who use their allowances to gamble.

In a statement, the association noted that the practice is a danger to students and could lead to a debt crisis among tertiary students.

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PSA has also highlighted that this behaviour undermines the purpose of the scheme and threatens the academic career of students.

Spokesperson Claude Naiker has called for oversight from NSFAS.

"The matter is exacerbated by the report by the Special Investigating Unit that over R2 billion in overpayments were made to higher education institutions and that approximately 40,000 students received incorrect payments between 2018 and 2021. There is clearly a systemic failure in financial oversight and accountability at the NSFAS."

He added that students need lessons on financial literacy.

"There is a need to collaborate with regulatory bodies to restrict access to online gambling platforms using NSFAS disbursements. Psychosocial support must be provided to students struggling with gambling addiction and debt."