CAPE TOWN, Western Cape — The National Student Financial Aid Scheme (NSFAS) 2027 funding cycle is facing intense scrutiny from the Portfolio Committee on Higher Education and Training as applications open, raising critical questions about the reliability of its private solution partners.
At a recent parliamentary briefing, lawmakers welcomed the scheme’s overarching plans to overhaul its funding and accommodation models. However, the current operational model, which relies heavily on private solution partners, drew heavy criticism from the committee. This oversight follows a legal review commissioned by the scheme and conducted by ENS Africa, which identified significant irregularities in the original procurement process used to appoint these partners.
Despite the identified procurement flaws, spokespersons for NSFAS maintain that the service level agreements (SLAs) with its four solution partners remain legally valid and enforceable. Representatives for the scheme argued that prematurely terminating these contracts—especially without robust internal systems ready to take over—would severely disrupt the accommodation and payment processes that student beneficiaries rely on. They cited a current lack of internal capacity to immediately replace the private partners.
Defending the financial value of the partnerships, a spokesperson for New Dawn Technologies, one of the appointed solution partners, claimed that its interventions have saved the scheme 327 million rand since being appointed in 2024. The company explained that this financial figure was calculated based on historical claims, progressively factoring in data through 2025 and 2026, while noting a maximum financial cap that applied irrespective of institutional grading.
The Portfolio Committee on Higher Education and Training strongly disputed these savings claims. Committee members expressed deep skepticism during the briefing, noting that they have reviewed the financial figures on a bi-weekly basis since the scheme was placed under administration. Lawmakers stated unequivocally that the claimed 327 million rand savings do not align with the actual data they are seeing, dismissing the partner’s claims as inaccurate.
As the 2027 academic year approaches, NSFAS insists it is actively strengthening its internal processes to ensure a smoother cycle. Nevertheless, the overarching effectiveness of its private solution partners and the broader accommodation systems will remain under strict parliamentary oversight.
