The Private Student Housing Association (PSHA) has issued a stark warning that thousands of students may face accommodation disruptions at the start of the 2025 academic year if the National Student Financial Aid Scheme (NSFAS) fails to pay outstanding debts within the next two weeks. According to the PSHA, NSFAS owes a staggering R44 million to its members, a sum that has been unpaid since 2024. This financial shortfall could create a nightmare scenario for students and their families, with the potential to disrupt their academic plans and force many into precarious living situations.
The PSHA, which provides accommodation for over 80,000 students, stated that the delayed payments were threatening the viability of private student housing providers. CEO Kagisho Mamabolo expressed regret over the position the association was forced to adopt but emphasized that the non-payment of fees was unsustainable for the businesses involved. The PSHA’s concerns were compounded by NSFAS’s failure to address the issue, with communication from the financial aid body described as increasingly difficult to initiate. Unanswered calls and unacknowledged emails have further fueled frustration among accommodation providers.
NSFAS’s failure to make timely payments also means that many landlords are left to shoulder the cost of housing students. The scheme has recently asked accommodation providers to continue housing students at their own expense for January, which Mamabolo deemed unfair. Without the necessary funds to cover basic services such as water, electricity, internet, and security, landlords are struggling to keep their businesses afloat. The financial burden on accommodation providers is compounded by the fact that NSFAS does not pay rental fees in December and January, leaving landlords in a particularly difficult position.
For years, the PSHA has advocated for universities to handle rental payments directly, rather than relying on NSFAS to process these fees. However, their calls for change have been ignored, and instead, the situation has worsened. The PSHA claims that NSFAS is exploiting the accommodation providers, leaving students caught in the middle. Mamabolo stressed that the lack of financial support from NSFAS has the potential to disrupt students’ academic careers, as they might not have a place to stay when the new semester begins. This, in turn, could jeopardize their access to higher education altogether.
The challenges faced by accommodation providers are not isolated. NSFAS has been embroiled in a number of controversies in recent years, including issues with unpaid loans from graduates, reduced funding for current students, and allegations of corruption. The financial aid scheme was restructured following the dismissal of its previous CEO, Andile Nongogo, who was accused of corruption related to the appointment of service providers. A pilot project was subsequently launched to address some of these issues, which includes direct payments to students rather than landlords, but this initiative has yet to be fully rolled out.
Many landlords have reported receiving only partial payments from NSFAS, with the remainder being paid directly to students. In some cases, students have failed to pass on the funds to their landlords, exacerbating the financial strain on accommodation providers. Despite these issues, the PSHA has continued to collaborate with NSFAS in good faith, supporting the aim of helping students from disadvantaged backgrounds access higher education. However, the ongoing delays in payments have made it increasingly difficult for providers to keep up with their obligations.
Mamabolo explained that the PSHA could not allow students back into their residences unless NSFAS settles its outstanding debts. To do so would be irresponsible from a business standpoint, particularly when the accommodation providers face mounting financial pressures. The PSHA has called on NSFAS to act swiftly, urging the financial aid body to set a positive example and demonstrate its commitment to serving students and supporting the sustainability of the housing sector.
Compounding the issue is the lack of clarity around the implementation of the grading and accreditation process for the 2025 academic year. There remains confusion between tertiary institutions, NSFAS, and accommodation providers about the requirements and expectations for accreditation. This has left both students and landlords uncertain about the quality of accommodation available and whether landlords will receive the agreed-upon payments for their services. As a result, the PSHA has called on NSFAS to resolve these issues quickly, ensuring both students’ access to safe, reliable housing and landlords’ financial stability.
With just weeks left until the 2025 academic year begins, the pressure is mounting on NSFAS to resolve its financial obligations. The PSHA has made it clear that without the necessary payments, students may not have a place to stay when the new semester starts, and their academic pursuits could be at risk. The time for action is now, and only swift intervention from NSFAS can prevent a full-scale crisis that could affect tens of thousands of students across the country.
