NSFAS Accommodation Crisis-Landlords Demand ‘Top-Up’ Fees Amid Payment Delays
NSFAS Accommodation Crisis-Landlords Demand ‘Top-Up’ Fees Amid Payment Delays. The ongoing accommodation crisis affecting students under the National Student Financial Aid Scheme (NSFAS) has escalated as landlords demand additional ‘top-up’ fees. With NSFAS failing to settle a R44 million debt from the 2024 academic year, thousands of students face the risk of eviction.
NSFAS Accommodation Crisis-Landlords Demand ‘Top-Up’ Fees Amid Payment Delays
The Private Student Housing Association (PSHA), which accommodates over 80,000 students, warned NSFAS about the accumulating debt over two weeks ago. According to PSHA Chief Executive Kagisho Mamabolo, students were allowed to stay in accommodations under provisional NSFAS funding, but the payments never reached landlords. The financial aid scheme has been reconciling data with universities, but inefficiencies in payment processing persist.
These delays have led to mass protests at institutions such as Nelson Mandela University and the University of the Western Cape (UWC), where students accused universities of failing to provide adequate accommodation. At UWC, frustrated students resorted to throwing stones at campus gates after some had to sleep in university corridors. Although UWC secured 1,180 additional beds, the crisis continues to affect many students.
Private Landlords Exploiting NSFAS Students
Students from the University of Johannesburg (UJ) have reported that some NSFAS-accredited landlords demand extra payments beyond the allocated funding. Despite NSFAS explicitly instructing landlords not to charge deposits or top-up fees, students claim they were asked to pay an additional R1,350 per month at Richmond Corner in Auckland Park.
“They told us that we must pay R1,350 over the R5,000 provided by NSFAS; otherwise, they would not secure a space for us,” a student revealed.
Richmond Corner management responded, stating that they charge a booking fee of R950 for all students, including NSFAS beneficiaries. However, student activists claim their concerns have been ignored, with some landlords refusing discussions without university representatives present.
Call for NSFAS and University Intervention
J-One Student Accommodation in Braamfontein, International Varsity Lodge, and Jezreel Trading Student Accommodation in Hursthill have also been accused of demanding administration fees of R250 from students.
Student activist Donald Mkhwanazi has urged NSFAS and universities to step in. “We need intervention so that students can continue their academic year without worrying about housing insecurity,” he said.
NSFAS Accommodation Allowance and Budget Cuts
The Organisation Undoing Tax Abuse (OUTA) has expressed concerns over NSFAS’s management of student housing, warning that the issue could spiral into a crisis. Last year, NSFAS approved funding for 550,000 students, with 25,743 students from UJ alone expected to receive financial aid in 2025.
In 2023, Higher Education and Training Minister Blade Nzimande reduced the accommodation allowance from R60,000 to R45,000 per student annually, citing efforts to curb rising costs. Currently, NSFAS provides up to R45,000 annually for university students and R33,000 for Technical Vocational Education and Training (TVET) college students.
Conclusion
As students struggle with financial burdens and housing insecurity, NSFAS and universities must take swift action to resolve these pressing issues. With ongoing protests and growing frustration, stakeholders must ensure that funding delays and exploitative practices do not hinder students’ education and well-being.
