06-08-2025
NSFAS under legal review: enhancing student accommodation management and third-party partnerships
South Africa is experiencing a surge in demand for built student accommodation, with a significant shortfall of over 500 000 beds needing to be addressed in the sector.
Image: Paballo Thekiso
The National Student Financial Aid Scheme's student accommodation management processes and the involvement of third-party partners are currently under a comprehensive legal review.
The student financier said it is currently awaiting the outcome of this review and will implement the recommendations to enhance transparency, integrity, and efficiency in its payment processes.
'NSFAS remains dedicated to supporting students and ensuring the timely and accurate disbursement of funds. We appreciate the cooperation of all stakeholders and remain committed to resolving these matters swiftly.'
In a statement intended to provide clarity on the current status of payments related to student accommodation, NSFAS said it wished to reaffirm that payments for accommodation are made exclusively for claims that have undergone and satisfied all validation and verification procedures.
It said the non-payment may result from claims involving students who are not funded, claims lacking confirmation from relevant institutions, or cases where registration data was not received before the payment deadline.
'NSFAS remains committed to safeguarding students from adverse outcomes, including eviction and safety risks, and continues to collaborate closely with institutions to resolve these issues swiftly and effectively.'
The entity said, "It does not confirm owing R62 million in arrears from January 2024 to July 2025."
"The Private Housing Student Association (PHSA) is an association representing landlords. NSFAS directly processes payments to individual landlords and does not make payments to associations. Furthermore, PHSA has not furnished a detailed breakdown of the claims they allege to be outstanding.'
Last month, Kagisho Mamabolo, the CEO of PHSA, said thousands of students continued to face uncertainty due to delayed NSFAS accommodation payments and the absence of a sustainable student housing funding model.
'Many private accommodation providers-who account for the majority of available beds-are at financial risk, compromising stability and continuity of services,' Mamabolo said then.
The Association said inconsistencies in accreditation frameworks, misaligned university policies, and punitive 5% NSFAS levies imposed by third-party intermediaries have created confusion and additional costs for both students and housing providers.
According to NSFAS, a total of R744,406,752 was paid to landlords during the April period in an effort to settle outstanding claims and reduce arrears.
NSFAS said it affirms that it has not exhausted its funding for paying landlords. It said payments are made strictly based on validated claims for students who are funded.
It said delays in payments can occur due to several factors, including: Students residing in accredited properties but not yet funded
Students onboarded at institutions not participating in the pilot program
Invoice discrepancies or errors
Students qualifying for transport allowances but residing in accredited accommodation
Properties are inaccurately accredited with high grades despite not meeting minimum norms and standards
Challenges related to the registration data upload portal, which was temporarily closed due to funding constraints. This has resulted in some students facing eviction, as landlords deny re-entry owing to unpaid dues. NSFAS said that it, along with partner institutions, is actively engaging to communicate and address these issues, which have caused hardship for affected students.
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