The National Student Financial Aid Scheme (NSFAS) has announced an investigation into allegations of student exploitation by private accommodation providers This follows a Sunday World article published on 16 February 2025, titled “Unscrupulous landlords demand sex from students,” which detailed claims of landlords demanding sexual favours from students in exchange for accommodation, and threats of eviction if refused.
NSFAS Condemns Exploitation and Gender-Based Violence
NSFAS has strongly condemned the alleged exploitation and gender-based violence faced by vulnerable students. In partnership with the Department of Higher Education and Training (DHET) and eThekwini TVET College, NSFAS will conduct a thorough investigation into the claims published in the media.
The findings will be shared publicly upon completion of the inquiry.
Financial Dispute with Landlords
The Sunday World article also alleged that NSFAS owes substantial amounts to landlords. In January 2025, the Private Student Housing Association (PSHA) warned it would refuse NSFAS-funded students if the scheme failed to pay an outstanding R44 million.
NSFAS Administrator, Freeman Novamlo, clarified the financial situation.
I can confirm that there is an amount of R44 Million that was still outstanding recently and the teams are processing that payment.
He acknowledged that money is owed to landlords, but confirmed the figure reported in the media was inaccurate. NSFAS is currently working with stakeholders to determine the precise amounts owed to accommodation providers.
Support for Affected Students and Potential Sanctions
NSFAS has pledged to support affected students in pursuing legal action against landlords found guilty of exploitation. If the investigation substantiates the allegations, NSFAS will take decisive action, including blacklisting and terminating contracts with implicated landlords to ensure student safety.
Should the investigations on the allegations against the landlords prove to be veracious, NSFAS will take decisive action, which may include blacklisting and terminating the services of the implicated landlords, to ensure student safety.
NSFAS Raises Concerns About Media Reporting
NSFAS expressed concern over the Sunday World's reporting, claiming the newspaper omitted key information, leading to a misleading representation of the situation. The scheme stated that its detailed response to the allegations was not included in the article.
Re-enrolment Support for Affected Students
Regarding students affected by the Close-Out project and outstanding fees payable by NSFAS, the scheme has confirmed that these students should be allowed to re-enrol. Details of affected students are to be shared with NSFAS Servicing teams deployed to all public universities and colleges.
