The National Student Financial Aid Scheme (NSFAS) has confirmed that all outstanding allowance payments, including those for the 2025 academic year and 2024 catch-up payments, will be processed by the end of May 2025. This commitment extends to university accommodation payments and 2024 catch-up accommodation payments, which are specifically scheduled for May 31, 2025.
This payment initiative aligns with CEO Waseem Carrim's pledge to clear all unpaid accommodation claims and resolve appeals by the end of May 2025. NSFAS has been facing significant challenges, including billions of rands in debt owed to various accommodation providers for several months.
NSFAS Implements Unaccredited Accommodation Cap
To encourage housing upgrades and compliance with its accreditation standards, NSFAS recently introduced an annual payment cap of R25,000 for unaccredited student housing. However, this policy faced criticism from Parliament's Higher Education Portfolio Committee Chairperson, Tebogo Letsie. While acknowledging the justification for penalizing non-compliant providers, Letsie argued that implementing such a change mid-academic term was poorly timed.
Letsie highlighted that many students had already entered lease agreements, some existing for years. With NSFAS reducing monthly payments to R2,500, the financial burden shifted to students, many of whom come from disadvantaged backgrounds.
NSFAS Acknowledges Accommodation Management Shortcomings
Carrim openly admitted that NSFAS was ill-prepared to manage student accommodation, particularly after launching a pilot project without adequate planning, feasibility studies, or a proper legal framework. The project, designed to enhance access to safe, accredited housing via a digital portal, involved 17 universities and 23 TVET colleges. However, it led to widespread issues, including housing shortages and significant payment delays, forcing some students to secure their own housing.
The accommodation management function was transferred to the CEO's office in April, and a legal review is currently underway. Discussions are in progress to transition accommodation management back to educational institutions by 2026, aiming for a fair and transparent process. Resolving these accommodation fee payments is crucial to prevent student evictions by private landlords.
