Earlier this year, it was revealed that NSFAS owed accommodation providers over R44 million. While some payments have been made, R27 million remains outstanding, putting financial strain on landlords.
PSHA CEO Kagisho Mamabolo stated that the outstanding payments have forced some landlords to consider cutting essential services, such as student transport.
Accommodation providers must meet strict eligibility criteria to house NSFAS-funded students. However, Mamabolo warned that their ability to comply is compromised when payments are delayed.
One of the key concerns is student safety. Providers are required to offer 24-hour security and biometric screening in their buildings, but late payments make it difficult to sustain these services.
We are expected to provide 24-hour security for students, biometrics at our building, and ensure that students are secured. That, on its own, requires personnel that must be on the premises day to day. So if payment doesn't come and there's no assurance of that payment, we have to reduce the staff that patrols the building.
In some cases, students have faced eviction due to landlords struggling with unpaid NSFAS allowances.
NSFAS Commits to Payment Schedule
NSFAS issued a statement committing to paying landlords on Monday, 31 March 2025. Initially, payments were scheduled for 4 May, but the scheme revised the date to demonstrate its commitment to supporting students.
Despite frustrations, PSHA remains hopeful about the leadership of new NSFAS CEO Waseem Carrim, who has pledged to resolve outstanding payments and introduce a structured payment schedule.
Mamabolo believes that a fixed payment schedule will allow accommodation providers to address the student housing shortage in South Africa more effectively.
Concerns Over NSFAS Lease Agreements and Centralised Accommodation System
Mamabolo also raised concerns about the lease agreements imposed by NSFAS, arguing that they are unsustainable for accommodation providers.
The issue of the lease agreement that NSFAS is forcing us to implement—and we believe that implementing that lease agreement, which is not viable, is going to cripple our businesses.
Additionally, NSFAS introduced a centralised accommodation portal, aiming to streamline student housing. After running a pilot programme, NSFAS officially launched the system this year.
However, Mamabolo criticised the new system, arguing that the previous payment system—where institutions directly paid landlords—worked better.
Our frustration is that NSFAS experimented with the system, it failed, but they still rolled it out.
PSHA has called for further trials and refinements to the centralised system to prevent students from facing unnecessary accommodation challenges.
