EFF demands answers as questions arise over NSFAS accommodation payments

The Economic Freedom Fighters (EFF) have asked questions about whether the National Student Financial Aid Scheme (NSFAS) continues to use private companies to manage student accommodation payments, and have demanded detailed information from the Higher Education Minister.

What the EFF says

According to IOL, EFF Member of Parliament Sihle Lonzi raised concerns after an oversight visit to NSFAS offices indicated that four accommodation “solution partner” companies were still performing student accommodation functions on behalf of the scheme.

Lonzi said the continued involvement of these companies is troubling because NSFAS and the Department of Higher Education had publicly announced the accommodation payment function had been brought in-house at the start of 2026, creating the impression that the previous middleman system had ended.

Scale and cost

According to IOL, Lonzi said NSFAS previously confirmed that approximately R2.9 billion in accommodation payments was processed through the middleman system during 2024, which he said resulted in approximately R145 million in fees.

According to IOL, Lonzi also said NSFAS had confirmed that during a single payment cycle in 2026 it paid more than R1.1 billion to accommodation providers. Based on those figures, Lonzi said the accommodation programme administered several billions of rand each year, and warned that continuing fees at the same rate would push the annual cost to the public purse above R220 million, according to IOL.

Parliamentary questions and specific requests

According to IOL, Lonzi has written to Higher Education Minister Buti Manamela requesting details on the four companies contracted to perform any functions related to student accommodation on behalf of NSFAS.

According to IOL, Lonzi asked the minister to:

• Provide the full legal names of the companies.
• Confirm whether they hold valid Financial Services Provider (FSP) licences.
• Explain what legal or regulatory framework permits them to conduct financial transactions on behalf of NSFAS if they are not licensed.

Additional information requested

According to IOL, Lonzi also requested:

• Information on the functions currently performed by the companies.
• Total amounts paid to each provider since the commencement of their contracts.
• Total value of accommodation payments processed through each company.
• Clarity on whether the contracts had been terminated, amended or extended.
• The relevant documentation and effective dates.

Why the EFF says it matters

According to IOL, Lonzi warned that fees paid to middlemen divert funds away from students and into administration. He said money spent on fees could instead be used to support students facing accommodation and funding challenges.

“The financial implications are enormous,”

“At a time when students continue to struggle to access accommodation and funding, every rand spent on unnecessary middleman schemes is a rand that could have been invested directly in supporting poor and working-class students of South Africa. Parliament is entitled to know precisely how much public money has been wasted on this scheme, and whether its continued existence can be justified.”

Next steps

According to IOL, Lonzi has asked the minister to provide the requested information; the matter now awaits a response from the Higher Education Minister.