Image Credit: DHET
The National Student Financial Aid Scheme (NSFAS) is leading consultations with communities, institutions, and private-housing stakeholders to overhaul its student accommodation framework. The aim is to clarify whether housing allowances are paid directly to students or to the accommodation providers themselves, Higher Education Minister Buti Manamela announced during a media briefing on Monday.
Why Change Is Needed
- The current policy generally pays accommodation funds directly to students, a system criticised by the Private Student Housing Association (PSHA), which argues that many students struggle to manage the funds while landlords remain unpaid.
- Accommodation providers claim that NSFAS owes them R44 million in rent for 2024, a debt which threatens the viability of private housing for students.
- Unsafe and undignified housing conditions persist, prompting concern that many students may be homeless if the current model remains unchanged.
What the New Framework Will Address
- The framework, due for completion by about October 2025, will determine whether NSFAS funds go directly to providers or continue paying students.
- It also seeks to resolve delays in disbursement and improve the payment process for landlords. Manamela emphasised the urgency of accrediting safe student housing and addressing unpaid landlords.
- New protocols are expected to tighten accreditation standards for student housing. NSFAS is instituting Student Accommodation Coordinators (SACs) responsible for accreditation, verification, and monitoring of private housing to ensure compliance with norms and standards.
Stakeholder Tensions and Risks
- PSHA has warned that if unpaid rents remain unresolved, students could be locked out of residences or switch off by landlordsimpacting tens of thousands of students.
- There is concern that direct payments to students might lead to misallocation of funds or be misused, with landlords left to cover infrastructure and utility costs without payment.