Over the past few weeks, university students in some tertiary institutions across the country staged protests against the decision. The students argued that the price cap was introduced without adequately considering the varying student accommodation costs in other institutions throughout the country.
For its part, NSFAS maintains that the accommodation price cap is a necessary measure to hold accommodation providers accountable for exploiting NSFAS through price collusion. The decision is also based on research and data that has been reviewed by stakeholders in the sector.
“In determining the cap, the NSFAS consulted available research and various stakeholders and went as far as holding a student accommodation summit, which was well attended by stakeholders and reviewed existing data. The accommodation problem was huge.”
The scheme has also acknowledged that there are institutions with student accommodation costs that are well above R45,000. These include UCT, Sol Plaatjie University, Rhodes, Wits, Stellenbosch University and the University of Pretoria.
NSFAS further stated that students at these institutions were left without accommodation in the past week because they could not afford the rental costs imposed by several accommodation providers.
The NSFAS spokesperson, Kagisho Mamabolo warned that thousands of students will be affected if challenges concerning student accommodation costs are not addressed. Since NSFAS-funded students cannot afford to pay R9,000 a month in rent, this is a problem.
“Exorbitant accommodation costs were not a NSFAS issue alone; it was a thorn in the flesh for many black parents who may not even qualify for NSFAS funding. The police, the teachers, nurses, and the middle class generally cannot afford to pay R9,000 per month for accommodation,” he stated
NSFAS spends R18 billion annually on student accommodation. But, according to the financial aid programme, accommodation providers would charge up to R90,000 per year for each bed.
The financial aid scheme is currently in the process of accrediting qualifying accommodation providers and intends to play an active role in determining whether student accommodation facilities are appropriate for students and conducive to their development by 2023.
