The National Student Financial Aid Scheme (NSFAS) has admitted it was unprepared to manage student accommodation for its bursary recipients, despite its intention to improve learning conditions through safe and suitable housing.
NSFAS launched a student accommodation pilot project across 17 universities and 23 TVET colleges to enhance access to accredited housing. The initiative aimed to partner directly with private providers via a new digital portal. However, the rollout faced significant issues due to a lack of planning.
Newly appointed acting CEO Waseem Carrim revealed that NSFAS proceeded with the pilot without feasibility studies, risk assessments, or clear legal and policy frameworks—leading to major problems for students, landlords, and institutions.
The current system does not allocate student accommodation in an effective and efficient manner,
One of the key challenges NSFAS faces is a shortage of safe student housing. Where beds are unavailable, NSFAS pays allowances directly to students, requiring them to find their own accommodation.
There are insufficient beds, which means we end up paying the students an allowance and say, go and find your own accommodation, which is not a good way to run the system,
Immediate Steps to Address Accommodation Issues
NSFAS is now working to resolve urgent issues related to unpaid accommodation claims and appeals, with the reconciliation process expected to conclude by 31 May 2025.
In March, the scheme directly paid accommodation allowances to 12,000 students. It is now working with students, institutions, and landlords to ensure the funds are transferred appropriately.
We are having to work with students, institutions, and landlords to ensure these [payments] are paid over to landlords.
Carrim also highlighted the lack of a clear accommodation policy, which has led to disputes at several institutions, including the Tshwane University of Technology (TUT). As TUT participates partially in the accommodation pilot, confusion has arisen around the accreditation of private housing.
In response, NSFAS has introduced a R25,000 annual cap on unaccredited accommodation, encouraging landlords to meet official standards.
Long-Term Solutions on the Way
From 1 April, the student accommodation function was moved from the Corporate Services unit to the CEO’s office to ensure more direct oversight.
“From 1 April, the student accommodation function was reallocated out of the Corporate Services unit to the CEO’s office to implement the directive on student accommodation.”
Legal firm ENS Africa is conducting a comprehensive review of the pilot project to clarify NSFAS’s legal obligations.
In the long term, discussions are underway with USAF (Universities South Africa) and SAPCO (South African Public Colleges Organisation) to create a transitional framework. This would enable institutions to resume responsibility for student housing by 2026.
We would like the function to go back to institutions, but we have to do it in a way that's fair, equitable and transparent… not just shifting the problem.
