The National Student Financial Aid Scheme (NSFAS) provides comprehensive bursaries to students from poor and working-class backgrounds. These bursaries aim to cover all the costs associated with obtaining a qualification from a tertiary education institution in South Africa.
Bursaries provided by NSFAS cover a student's tuition and registration fees. Students also receive a learning material allowance, a living allowance and an accommodation allowance. The accommodation allowance ensures students live in close proximity to the institution they are attending.
Ernest Khosa, NSFAS Board Chairperson recently revealed what the financial aid scheme plans to do to improve student accommodation and ensure residences are suitable and conducive to learning.
NSFAS is currently spending R13 Billion annually on student accommodation.
In a recent interview, Khosa said it would be helpful if all student accommodation would be state-owned or university owned. They believe this will ensure institutions have control over student housing making it more accessible for students.
Additionally, this could ensure that accommodation is closely monitored and regulated where necessary. This includes oversight over costs and the standards of the facilities.
Khosa acknowledged that currently, universities do not have the capacity to house all of their students in their own accommodation facilities. Students who cannot be housed in university residences rely on housing from private accommodation providers.
In 2023, NSFAS introduced a cap of R45,000 on the accommodation allowance. This was done to prevent profiteering and possible price collusion by private accommodation providers.
The introduction of the cap has negatively impacted several universities and thousands of students. This is because the amount of R45,000 is not enough to cover accommodation costs for a year. Some accommodation providers charge up to R9,000 for student accommodation.
Khosa rejected assertions that students were left to fend for themselves once they arrived at institution. They say that students should not have to interact with real estate but should be accommodated on their arrival at university.
In an effort to address accommodation capacity challenges, NSFAS will sign off-take agreements with accommodation providers. These providers can register their property on the NSFAS accommodation portal for it to be considered for NSFAS-funded students.
Khosa explained that NSFAS will work with these accommodation providers for up to 20 years. However, after two decades, the buildings will be transferred to the universities.
When asked why NSFAS can't give students the money and leave them to fund accommodation themselves, Khosa said the money may not be used for its intended purpose.
They said some students were staying in terrible accommodation and pocketing the rest of the money. They added that the money given by NSFAS is for studies and is not a salary.
