The Private Student Housing Association (PSHA) has warned that delays in accommodation allowance payments from the National Student Financial Aid Scheme (NSFAS) are negatively affecting students. This follows NSFAS’s recent commitment to settling outstanding payments owed to landlords.
NSFAS Still Owes Millions to Accommodation Providers
Earlier this year, it was revealed that NSFAS owed more than R44 million to student accommodation providers. Although some payments have been made in recent months, R27 million remains outstanding according to the PSHA.
PSHA CEO Kagisho Mamabolo says these overdue payments have placed severe financial strain on accommodation providers, forcing some to consider cutting essential services, such as student transport.
Impact on Student Housing and Safety
Mamabolo explains that student accommodation providers must meet strict requirements to house NSFAS-funded students. However, meeting these standards becomes challenging when allowance payments are delayed.
One of the primary concerns is student safety. Accommodation providers are required to offer 24-hour security and implement biometric access systems. Mamabolo warns that without timely payments, some providers may be unable to afford these services, potentially leaving students vulnerable. In some cases, delayed payments have even resulted in student evictions.
We are expected to provide 24-hour security, biometric access, and ensure students are safe. This requires staff to be present daily. When payments are delayed, and there is no certainty of receiving them, we have no choice but to reduce security personnel,
In response to mounting concerns, NSFAS has released a statement confirming that landlords will be paid by 31 March 2025. The scheme had initially set the payment date for 4 May but moved it forward, citing a commitment to supporting students who rely on NSFAS-funded housing.
Despite frustrations, PSHA remains optimistic about NSFAS’s new leadership. CEO Waseem Carrim has pledged to resolve outstanding payments and introduce a structured payment schedule to prevent similar issues in the future.
Calls for a Fixed Payment Schedule
Mamabolo believes that a fixed and predictable payment schedule will enable accommodation providers to better manage student housing and address the country’s student accommodation shortages.
PSHA also intends to raise concerns about NSFAS’s lease agreements, which accommodation providers must adhere to.
The lease agreement NSFAS is enforcing is not viable. If implemented, it will cripple our businesses,
NSFAS’s Centralised Accommodation System Faces Criticism
To address accommodation challenges, NSFAS introduced a centralised accommodation portal, which was rolled out after a pilot programme at select institutions. The full programme was launched this year.
However, Mamabolo argues that the previous system where institutions paid accommodation providers directly was more effectively. He believes that NSFAS’s new system has introduced additional challenges.
NSFAS experimented with the system, it failed, but they still went ahead with it,
PSHA is urging NSFAS to conduct further testing before fully implementing the centralised accommodation system to prevent potential disruptions for students.
