The National Student Financial Aid Scheme (NSFAS) has outlined its accommodation allowance payment plans for 2025 and provided an update on outstanding payments owed to accommodation providers from the 2024 academic year.
NSFAS Addresses 2024 Payment Delays
NSFAS acknowledged ongoing payment delays from 2024 and assured landlords participating in the private student accommodation pilot project that steps are being taken to resolve the issue. Reports indicate that the government bursary scheme owes millions of rands to accommodation providers, leading to financial strain on landlords.
A key challenge has been incorrect fund allocations, where payments were mistakenly directed to institutions or students instead of landlords. Additionally, allowance adjustments caused further discrepancies.
To address these issues, NSFAS has conducted three catch-up payment runs since January 2025 and aims to settle all legitimate outstanding claims by 31 April 2025. Landlords with rejected claims will be contacted individually.
Since January 2025, we have made three (3) catch-up payments to clear legitimate claims. This reconciliation process is expected to conclude by 31 April 2025, when all legitimate payments will have been processed. Communication will be sent to individual accommodation providers in cases where claims are deemed illegitimate.
NSFAS Confirms How 2025 Accommodation Allowances Will Work
For 2025, NSFAS allowances will increase by 4%, including adjustments to accommodation allowances. New accommodation allowance caps have been set by Minister of Higher Education and Training, Dr. Nobuhle Nkabane.
As institutions began uploading student registration data for 2025, NSFAS is now preparing for disbursements to TVET and university private accommodation providers. Payments for February and March 2025 are scheduled for 28 March, 2025.
Payments will be made for a maximum of 10 months, with exceptions addressed through institutional engagement.
To prevent delays, NSFAS will align accommodation payments with students' academic cycles. This new approach is designed to reduce invoice submission bottlenecks and strengthen internal controls.
NSFAS has also pledged to ensure timely payments while addressing any outstanding issues before the next disbursement. Landlords are urged to comply with onboarding procedures and follow lease agreement protocols for student movements to avoid further payment delays.
To foster better collaboration, NSFAS is committed to maintaining open communication and holding quarterly regional engagements with accommodation providers.
Unaccredited Accommodation Guidelines
NSFAS reiterated that it does not regulate unaccredited accommodation. However, unaccredited properties may be used if no accredited options are available, subject to a maximum annual cap of R25,000.
Institutions have been advised to exercise strict due diligence before approving these claims to ensure compliance with service standards.
