The debate surrounding the housing restriction imposed by NSFAS has entered a new phase, as private student housing providers warn that the current funding model has failed to solve housing affordability issues and threatens the sustainability of the student accommodation sector.
Kegisho Mamabolo, CEO of the Private Student Housing Association (PSHA), stated that this restriction has not resolved the crisis but has only created uncertainty for students, universities, and the housing providers themselves.
PSHA's comments came amid demands from student representative councils from ten universities to lift this restriction, as they argue that it forces many NSFAS-funded students to struggle for the ability to afford housing.
Mamabolo agreed with the Student Representative Councils (SRCs) that the current housing restriction has not solved the affordability problems for students. However, he emphasized that the solution cannot solely be the removal of this limit, but requires the implementation of a funding model that adequately reflects the real costs of providing student housing.
The Association noted that the restriction only concerned one element of the funding system, while the main factors affecting costs remained unchanged. Furthermore, the sector has suffered from years of political uncertainty caused by changes in NSFAS funding rules and accreditation requirements.
Since 2023, the private student housing sector has experienced an unprecedented period of regulatory changes. While the annual increase in NSFAS rent was 2% in 2023, it was 4% the previous year, and 0% this year, whereas the average increase in municipal and other expenses exceeded 10%. As a result, housing providers are effectively subsidizing the government and students.
Mamabolo noted that such a situation is unsustainable for all parties—providers, the government, and students. He added that providers are facing rising costs, including electricity, utilities, maintenance, security, labor, and financing, while NSFAS housing allowances have not kept pace with this growth.
The CEO of PSHA stated that the financial gap ultimately affects all participants in the process: students, educational institutions, housing providers, and future investors. The Association insists that this issue should be viewed not as a conflict between students and landlords, but as a consequence of the lack of a clear and sustainable student housing funding system.
Additionally, the association supported calls for the immediate announcement of NSFAS housing allowances for 2026, as delays create uncertainty for both students and providers. PSHA finds it unacceptable that students, universities, and providers continue to operate based on outdated funding assumptions months after the start of the academic year, and insists that annual housing rates must be confirmed before the start of the academic year.
The Parliamentary Committee on Higher Education and Training defended the National Student Financial Aid Scheme (NSFAS) set limit on housing costs, despite active demands from Students' Representative Councils (SRC) to abolish this restriction. In light of this, Parliament announced a national colloquium on student housing conditions next month.
Recent tension arose after the SRCs of the University of Cape Town (UCT), the University of the Witwatersrand (Wits), the University of Johannesburg (UJ), and Stellenbosch University issued a joint statement demanding the immediate removal of the NSFAS housing cap. By Wednesday, six more institutions joined this statement: Fort Hare University, Tshwane University of Technology, Walter Sisulu University, University of Venda, Sol Plaatje University, and Nelson Mandela University, bringing the total number of institutions to ten.
Student leaders stated that the lack of housing price regulation has created an 'unstable environment' for students from low-income backgrounds and workers, leading to accumulated rental debts, eviction threats, registration obstacles, and delays in academic progress. They insisted on the immediate abolition of the cap, the introduction of student housing price regulation, and the urgent announcement of NSFAS rates for 2026.
The Chairperson of the Parliamentary Committee on Higher Education and Training, Tebogo Letsie, rejected the notion that the crisis is linked to NSFAS. He argued that universities and housing providers themselves should bear responsibility for charging excessive tariffs. Letsie stated that they have publicly announced a meeting with USAF, SAUS, SASVETSA, the Competition Commission, and real estate agents because they were not convinced that the tariffs set by some institutions were justified.
He emphasized that student leaders should demand greater accountability from universities instead of criticizing the housing cap. Letsie asked: 'If these expenses cannot be reasonably explained, why is the focus on criticizing NSFAS for attempting to regulate student housing prices, instead of addressing a problem that appears to be excessive pricing by certain institutions and housing providers?'
Most members of the Higher Education and Training Committee support the implementation of the NSFAS cap, viewing it as a mechanism to control housing prices and promote greater affordability and fairness. Furthermore, it was announced that Parliament will hold a Student Housing Colloquium on August 28, inviting national student organizations, including the South African Students Union (SAUS) and the South African Students' Association for Technical and Vocational Education (SASVETSA), to present their proposals on the cap and broader student housing issues.
These events unfold against concerns first raised by the UCT SRC in May, when it warned that private housing costs in Cape Town had exceeded the NSFAS limit, preventing many funded students from covering rent and leading to debt accumulation. As of publication, NSFAS has not responded to media inquiries.
The University of South Africa (Unisa) refutes the explanations provided by the National Student Financial Aid Scheme (NSFAS) regarding July stipend payment delays, insisting that the disruption was caused by broader systemic problems rather than errors on the university's part.
Conflicting accounts have cast doubt on responsibility for the delays affecting over 93,000 students receiving funding from NSFAS and awaiting monthly living allowances. In a statement released on Thursday, NSFAS reported that it transferred the necessary funds to Unisa on July 2nd after completing reconciliation procedures, and that the responsibility for distributing the grants then lay with the university.
According to NSFAS, some students experienced delays due to technical issues in Unisa's payment process. The fund stated that these issues were resolved on July 6th, and outstanding payments are being finalized. Data presented by Unisa indicates that approximately 93,093 students were affected. NSFAS clarified that some beneficiaries have already received their grants, and the remaining students were promised payments within a week.
However, Unisa disagrees with this version. Several days before the NSFAS statement was published, Chief Financial Officer Liana Jobert told SABC News that the university had begun processing payment batches last Friday, and all eligible students had been notified of the transfer. Jobert emphasized: 'This is predominantly not an Unisa problem. Of course, it is a systemic issue, not an Unisa problem, but we managed the process exceptionally well on our end.'
Unisa, which has over 380,000 students, including about 177,000 funded by NSFAS, noted that processing payments at the largest distance learning institution in South Africa is a complex undertaking due to the scale of its student body. Jobert's statements sharply contrast with NSFAS's explanation. While the university attributes the fault to wider systemic difficulties, NSFAS claims the cause was technical complications in Unisa's payment process.
The dispute intensified during the first official visit of the new Deputy Minister of Higher Education and Training, Yusuf Kassim, to the Muckleneuk campus in Pretoria on Thursday. Kassim met with student leaders and university management to assess conflicting information regarding payment delays following numerous complaints received via the Deputy Minister's Hotline. During the meeting, university officials detailed the payment process and the factors behind the delays.
Kassim stated that the priority is resolving student issues through constructive engagement, rather than assigning blame. He noted: 'We are here to listen and address the frustrations expressed by students regarding their experience through existing institutional channels.'
During the meeting, Jobert highlighted the financial pressure the institution is under. She reported that in 2025, Unisa recorded a deficit of 106 million rand after paying students more than it received. Jobert added that 'this discrepancy will require thorough review by audit committees.'
Looking ahead, Jobert mentioned that in March 2026, the university received 733 million rand from NSFAS but spent 907 million rand to ensure timely access to study materials for students, which is expected to result in an additional deficit of 213 million rand. She explained that much of the financial strain is related to a long-standing policy gap between funding for distance and contact learning. According to Jobert, Unisa students currently receive an average annual allowance of about 9,000 rand, compared to approximately 48,000 rand for students attending contact universities. Furthermore, the institution receives only 316 rand per student for administering the grant system, which she called an insufficient amount. She stressed: 'We are not blaming NSFAS, but we are interested in close collaboration with them to synchronize payments. We can only disburse funds after receiving them.'
Following the meeting, Unisa issued a statement indicating that 98.2% of eligible NSFAS-funded students have received their grants. The remaining 2% of unpaid cases are mainly linked to administrative and compliance issues, including incorrect or missing bank details, failed bank verification, duplicate registrations, and unconfirmed NSFAS requirements. The university stated: 'It is important to note that Unisa did not encounter technical difficulties in processing NSFAS grant payments.'
The university also provided details of the process: 'NSFAS transferred the funds to the University on July 2, 2026. Within 24 hours, on July 3, Unisa began processing payments, and from July 3 to July 7, successfully processed grants for over 95,000 students.' The university added that after processing payment instructions, the time for funds to be credited to student accounts depends on individual bank processing times. It confirmed that the payment process was completed within the seven-day period agreed upon with NSFAS.
NSFAS reported that it is currently funding 168,480 students through a textbook program worth 425.6 million rand and 93,910 students through a living allowance program valued at 148.6 million rand. Unlike students at contact universities, Unisa students do not receive meal allowances; instead, eligible students receive support through book and material allowances, as well as living allowances. NSFAS expressed understanding of the concerns of affected students and continues close engagement with Unisa to ensure prompt receipt of grants by all eligible beneficiaries.
