The National Student Financial Scheme has implemented a R45000 cap on student housing in order to control the unregulated, rising expenses for student accommodation.
According to Higher Education Minister, Blade Nzimande, the price cap was instituted by NSFAS to manage price fixing and profiteering by private providers.
Currently, there is a challenge of private and institutional accommodation above the cap of R45,000. NSFAS is working with the affected institutions and is fast-tracking the accreditation in the affected areas.
Additionally, the scheme has made it possible for a direct payment platform and a platform for student housing to address problems that were previously encountered and had a significant negative effect on the well-being of students.
The Higher Education Department has also invested R7.584 billion in infrastructure projects across all 26 universities throughout the country. Nzimande further stated that R2.953 billion of this investment will be used to provide 16 858 beds of student housing at 11 institutions.
"This will guarantee that we install 15 898 new beds and refurbish 960 existing ones."
NSFAS has also stated that the student accommodation market in the country is categorised into three market segments, namely the first, second and third market segments. The first segment is composed of and targeted towards the lowest income bracket and also forms part of the NSFAS student's accommodation market.
The second market segment is intended for middle-income students who can afford to pay a monthly fee of between R3 000 and R 4 500 and comes with larger rooms along with other amenities.
The third market segment is also classified as upper-end student accommodation targeted towards students with an affordability range of between R5000 and R8000 per month and can be as high as R14 000. NSFAS settles for the second market segment based on affordability.
