The National Student Financial Aid Scheme (NSFAS) Student Accommodation Pilot Programme has made great strides. However, it has encountered significant challenges which require urgent reconsideration in NSFAS approach to student accommodation.
NSFAS receives more than R50 Billion rand from National Treasury to support students achieve their academic goals. They do this by providing comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges.
Part of the funding provided by NSFAS makes provision for student accommodation. However, challenges in the sector including student living in accommodation that is not conducive to learning forced the scheme to rethink its approach to student accommodation.
NSFAS recently held a review of the accommodation pilot programme in the Eastern Cape. The two-day event was attended by various stakeholders including the officials from the Department of Higher Education (DHET), accommodation providers, universities, TVET colleges, International Finance Corporation and the Department of Public Service and Administration.
The government launched an accommodation pilot project to enhance the availability of accredited housing for students at 17 South African universities and 23 TVET colleges. This project is part of NSFAS's shift to ensure safer, quality student housing by working directly with accredited private providers, accessible through a new digital portal.
DID NSFAS Really Accredit Shacks For Student Accommodation?
This system is designed to support students in finding accommodations that meet the set standards of safety and quality, though it’s faced challenges with limited access and functionality, sparking criticism from groups like the Organisation Undoing Tax Abuse (OUTA)
The review of the programme proceeded into four different commissions.
The commissions
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Commission 1 - Management Of Relations NSFAS , Colleges, Universities And Landlords
- Commission 2 - 2025 Accreditation And Grading
- Commission 3 - Accommodation Cape Establishment
- Commission 4 - Embedding holistic student experience and appropriate regulatory framework in private student accommodation
NSFAS administrator Freeman Nomvalo encouraged stakeholders to engage robustly with the ultimate goal being to find solutions for the current challenges facing students and for the future of student accommodation.
The DHET’s Khanyiso Sonti believes the accommodation pilot remains an important initiative for the department.
As we reflect on the pilot project, we should understand that the initiative was, and still is, aimed at enhancing the lining condition of students - a goal that is both bole and necessary.
Concerns Over Higher Student Accommodation Costs
Minister Nkabane also expressed concern over the high costs of private student accommodation in South Africa. The Minister says the billions of rands paid to private student accommodation providers are unsustainable.
Our projections are saying that we are spending 20 to 30 billion a year so if that's the case, we need to at some point come up with a strategy or review our model that we are using as far as private student accommodation is concerned.
NSFAS recently introduced an accommodation cap to curb the high costs of private accommodation.
Students living in approved private accommodations are eligible for a capped housing allowance of up to R50,000 annually in metropolitan areas and R41,000 in other regions. This applies to university students and TVET College students.
Recent statements from the Minister indicate that NSFAS’ accommodation allowance strategy could change.
