NSFAS payment delays continue to threaten the stability of student accommodation, with eviction risks mounting for students across South Africa.
The delay in payments from NSFAS is threatening the stability of student accommodation across South Africa. With many accommodation providers still waiting for payments for services rendered since the beginning of the year, eviction threats are becoming a serious concern, leaving thousands of students potentially facing homelessness.
NSFAS Payment Delays and Financial Uncertainty
Amos Mdluli, the Secretary-General of the National Association for Student Accommodation Transformation (NASAT), voiced the growing frustration among accommodation providers. He explained that despite promises from NSFAS to settle outstanding debts, many service providers have only received partial payments, while others are still waiting for compensation for accommodation services provided in 2024.
To make matters worse, NSFAS owes R140 million for services rendered last year. As the delays continue, many accommodation providers have been forced into debt and are struggling to meet their financial obligations. This precarious situation has put student accommodation providers in a difficult position, and without the necessary funds, some have warned that they may have no choice but to evict students who rely on NSFAS funding for their housing.
The NSFAS Payment Delays’ Ripple Effect on Students and Accommodation Providers
For students, the implications are dire. Many students depend on NSFAS funding to secure a place to stay while they pursue their studies. With housing now at risk, they face the prospect of being forced out of their accommodation if payments are not made promptly.
For accommodation providers, particularly small businesses that are integral to the student housing sector, the delays in NSFAS payments are creating significant financial strain. Many small businesses operate on tight margins and depend on timely payments from NSFAS to keep their facilities running. The ongoing delay jeopardizes their ability to continue offering accommodation to students, leading to fears of widespread evictions.
NASAT’s Efforts for Clear Communication
NASAT has made numerous attempts to engage with NSFAS and resolve the payment issue. On 19 March, a meeting took place where NASAT made written submissions and formally requested a clear line of communication and updates regarding outstanding payments. Unfortunately, the organization reports that they have yet to receive any definitive answers from NSFAS, leaving providers in the dark about when full payments will be made.
NASAT’s Mdluli emphasized that the lack of communication and ongoing delays not only undermine the ability of accommodation providers to serve students but also negatively impact the larger economy. Small businesses within the student accommodation sector are vital to South Africa’s economy, offering job opportunities and fostering entrepreneurship. However, without payments from NSFAS, many of these businesses could be forced to close, putting jobs and future opportunities at risk.
NSFAS’s Response and Call for Cooperation
In response to the situation, NSFAS has expressed its commitment to resolving the payment issues, citing internal process improvements aimed at streamlining payments. In a statement released on Monday 7 April 2025, NSFAS promised that accommodation payments would be processed on 17 April 2025.
NSFAS has urged accommodation providers not to evict students, stressing that cooperation is essential in ensuring that students can maintain stable housing while continuing their education. The organization also pledged to work more closely with accommodation providers to develop long-term solutions to the challenges facing the student accommodation sector.
Despite these assurances, many accommodation providers remain sceptical and are calling for more decisive action to resolve the issue. For now, the threat of eviction looms large, and students continue to face an uncertain future.
Also read: Can You Lose Your NSFAS Allowance If You Receive Another Bursary? What You Need to Know
