Universities Appeal NSFAS Accommodation Cap

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There has been unrest across many campuses since the start of the 2023 academic year. This unrest, has been the result of NSFAS allowances and a new cap on student accommodation.


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During a parliamentary committee meeting on Higher Education, some concerns were raised on why the National Student Financial Scheme (NSFAS) put a student accommodation cap in place.

This follows countrywide protests by students at various institutions of higher learning against the newly implemented housing cap of R45,000 per annum.

The committee questioned whether the decision to implement the cap was justifiable according to research and consultations from universities and student unions.

There are 26 public universities in South Africa. At least ten universities have stated that they have no intention to appeal the accommodation capping, as it does not negatively affect them.

Whilst a further ten universities have appealed, and at least 5 more are planning to appeal and UNISA is not affected by the accommodation capping.

According to Dr Phethiwe Matutu, CEO of Universities South Africa (USAF) they supported the NSFAS accommodation capping on the condition that it was suitable for the areas the universities were located.

However, some universities submitted appeal letters to the bursary scheme, noting that the cap amount was insufficient for the accommodation in its areas.

Matutu said that during several engagements with NSFAS last year, they did not recommend a single-cap for all national institutions. Instead, Usaf suggested that the new policy should be tested out in a few institutions, based on research about the demographics.

Some institutions can pay for the difference between the cap amount and the actual rent amount required by accommodation providers for students, it is all based on the ability of an institution to do so.

Usaf adds, “Student accommodation should be self-sustainable and not subsidised by universities. A lot of university contributions for students were usually for tuition, for example, the UFS has set aside an estimated amount of R120 million to provide bursaries for students who cannot afford to pay for tuition.”

USAf said it’s having ongoing engagements with the Department of Higher Education and Minister Nzimande to address the issues raised by students and universities.

The department has set up a Task Team to find solutions and whether alternative accommodation can be provided within the stipulated rate of R45 000 per annum.

To find out more about the NSFAS bursary, applications and the latest changes, head to our NSFAS page.

 

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