As part of their proposed policy changes, NSFAS has proposed financial capping of accommodation allowances and plans to accredit student accommodation without the assistance of universities.
This means that the bursary scheme has proposed capping the accommodation allowance at R45 000, excluding student food allowances, to reduce the rising cost of student housing.
However, although NSFAS views this as an appropriate measure to ensure that all benefiting students can access student housing, Universities South Africa does not share this view. The organisation says that this will likely result in students living in residences that are not a suitable learning environment.
The organisation raised its concerns during a recent conference, held by top officials from the NSFAS board, the Department of Higher Education Universities South Africa (USAF) and the South African Union of Students.
The USAF stated that the cap on housing allowances should be supported by concrete evidence to ensure that students have access to suitable housing to support their academic endeavours. This is in addition to voicing out the need for adequate implementation preparation to prevent disruptions to the 2023 academic year.
USAF advanced its position for formulating joint risk mitigation strategies and ensuring that universities can register new and returning students without significant disruptions.
Before this, universities would advance student allowances from their resources due to NSFAS delays, as their allowance disbursements begin after the academic year has started, which is the main cause for concern.
In response, Vice-Chancellors were reassured by NSFAS that allowance payments for all NSFAS-supported students enrolled in the system between February and April 2023 had been made (estimated at R3.5 billion).
During the meeting, Nsfas also decided that universities who preferred to keep their current housing arrangements (i.e., continue to accredit and distribute student housing and make the necessary student fees) had to apply to Nsfas
