The Civil Organisation, Undoing Tax Abuse (OUTA), has raised alarms over the state of private student accommodation in South Africa, urging a return to the model where tertiary academic institutions managed these facilities. Their call comes in the wake of a troubling funding crisis linked to the National Student Financial Aid Scheme (NSFAS), which has left many students and service providers in dire straits.
In recent months, institutions providing private student housing have faced immense challenges stemming from significant delays in NSFAS funding. This backlog has not only threatened the livelihoods of accommodation providers but has also placed students at risk of eviction. Among those deeply affected is the Private Student Housing Association, which has disclosed that it is owed a staggering R44 million by NSFAS. As the pressure mounts, the Association has warned that should the funds remain unpaid in two weeks, they will be left with no option but to halt services and evict over a thousand students.
As students prepare for the 2025 academic year, many are anxiously searching for stable housing solutions. The uncertainty regarding NSFAS funding presents a worrying portrait of the landscape of student accommodation, with affected students expressing their distress over the lack of clarity on funding timelines.
In response to the emerging crisis, NSFAS and the Department of Higher Education are reportedly working diligently to resolve the funding issues and ensure that all eligible students receive the support they need. “We are doing everything in our power to expedite the process and facilitate timely payments to both students and service providers,” said a representative from the Department of Higher Education.
Despite these assurances, OUTA’s proposal to shift the management of private student accommodation back to universities is gaining traction. Advocates argue that such a move could provide a more stable environment for both students and service providers, ensuring that financial matters are handled with the utmost urgency and efficiency.
This crisis represents not just a financial hurdle for many students but a systemic challenge that necessitates a comprehensive review of the management and disbursement processes of student housing—a task that requires immediate attention from both government and educational institutions.