Private accommodation providers worry over NSFAS nonpayment
Private accommodation providers accredited to house students through the National Student Financial Aid Scheme (NSFAS) have expressed 'deep concern and mounting frustration' over continued non-payments and sudden exclusion from the student housing system.
The providers, primarily in Tshwane, say they have not been paid despite written agreements and have been blindsided by a decision to limit the Tshwane University of Technology's housing pilot to just 2,000 beds.
'On April 7, accommodation providers across most regions in the country experienced either no payment or partial payment, despite NSFAS' repeated public commitments to settle outstanding invoices by that date.
'Adding to our distress, on April 16, providers were blindsided by an email from NSFAS announcing a decision with TUT to limit the student housing pilot to only 2,000 beds at two selected residences, thereby excluding hundreds of other accredited providers who have been housing students since February 2024.'
The providers said the NSFAS action amounted to a breach of contract and undermined trust in public-private partnerships.
'It is both unethical and unlawful to retroactively exclude providers who have already been fulfilling their responsibilities, based on NSFAS' prior written approvals and commitments. Is this not a breach of contract? Many of us signed formal offer letters and lease agreements that clearly confirmed we were to accommodate NSFAS-funded students,' they said.
The group warned it could not continue operating beyond May 1 without urgent payments.
'Without payment, we cannot sustain these services, and the welfare and safety of thousands of students hang in the balance,' said the group.
The providers called for immediate settlement of outstanding invoices, a halt to student relocations and clear, consistent communication from NSFAS.
Nsfas said it issued a circular on April 7, reminding landlords of the April 17 accommodation payment deadline and the April 9 submission deadline.
'To prepare, NSFAS requested solution partners to provide lists of NSFAS-accredited student accommodation applications, subject to institutional eligibility verification. The verification process is inherently complex, involving multiple checks to ensure compliance with NSFAS and government regulations.
'This process is meant to ensure that NSFAS does not pay ghost students, who are neither funded by NSFAS nor enrolled in any public university or college,' NSFAS spokesperson Ishmael Mnisi said.
He said the verification process was ongoing for all the claims that were unpaid and feedback was provided to all landlords through its solution partners.
Mnisi said NSFAS was not aware of any instruction directing students to vacate properties that had been previously approved and occupied by students since early 2024.
Mnisi said students could be placed only in accommodation that has been officially approved by their institution.
'If an institution has not approved the placement of the student, NSFAS cannot pay the accommodation provider. Therefore, accommodation providers who have accommodated students without obtaining the institution's approval run the risk of nonpayment for the services rendered,' he said.
Mnisi said the decision to limit the TUT pilot programme to 2,000 beds was informed by the projected student demand, which the university could not meet given the limited capacity of its own and leased accommodation.
'While the specifics of the decision-making process are internal, NSFAS acknowledges the impact on providers and any future adjustments or expansions of the programme will involve consultation with affected providers and stakeholders.'
He urged landlords to refrain from evicting students while working collaboratively with the scheme to submit accommodation claims.
'There will be a top-up payment in May for landlords who may not have received payment during the April run,' said Mnisi.
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