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DA Presents Alternative NSFAS Funding Model Amidst Public Protector Investigation



DA Presents Alternative NSFAS Funding Model Amidst Public Protector Investigation

DA Presents Alternative NSFAS Funding Model Amidst Public Protector Investigation. The DA has unveiled a new student funding model as a solution to the challenges facing the National Student Financial Aid Scheme (NSFAS). Additionally, an update on the investigation into NSFAS direct payment contracts by the Public Protector is provided in this article. Check your application status now.

Issues with the Current NSFAS Funding Model:

The current higher education funding model is deemed unsustainable due to economic challenges, fiscal mismanagement, and corruption. Centralized operations and ICT interface differences between institutions and NSFAS further complicate matters, leading to registration and accommodation issues for students.

The DA’s Proposed Alternative Funding Model:

The DA proposes a tiered system for loans and grants, focusing on supporting students from low-income households. This differentiated loan scheme will be income-based, with favorable repayment conditions. Loans can be converted into bursaries based on academic performance, encouraging better student outcomes. This approach addresses the “missing middle” while expanding accommodation allowances and eliminating the blanket accommodation cap.

Additionally, the DA plans to conduct a national survey to assess the state of higher education and student accommodation needs.

The Public Protector’s Investigation of NSFAS Direct Payment Contracts:

The Public Protector’s investigation centers on potential violations of tender processes and policies, with a secondary focus on the companies awarded the contracts and their directors. Any irregularities discovered will be reported to financial authorities, and the bid evaluation committee, including NSFAS CEO Andile Nongogo and Minister Blade Nzimande, may be questioned if necessary.


The DA’s alternative NSFAS funding model offers a promising solution to address the current challenges in higher education financing. Additionally, the ongoing investigation by the Public Protector into NSFAS direct payment contracts underscores the need for transparency and accountability in such crucial matters. These developments signal potential improvements in the accessibility and sustainability of student funding in South Africa’s higher education sector.

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