Nsfas to settle R44m debt: Outa calls for immediate action

The National Student Financial Aid Scheme (Nsfas) found itself under fire yet again as unresolved issues in its student accommodation programmes threaten to spark nationwide unrest.

Despite previous warnings from Organisation Undoing Tax Abuse (Outa), Nsfas has not settled its debt to the Private Student Housing Association (PSHA).

On Wednesday, Outa urged Nsfas to allow universities and colleges to manage student housing in 2024, citing the fund’s inadequate handling of private accommodation.

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R44 million debt by Nsfas

Outa senior project manager Rudie Heyneke warned of a student accommodation crisis because of Nsfas‘s poor handling of private student accommodation.

In a statement by Outa this week, the PSHA warned that the accommodation provider would not open for returning students unless Nsfas settles the R44 million owed from last year’s accommodation within 14 days.

“Both students and landlords are victims of Nsfas’s poor financial management.

“Outa has been warning since 2023 that Nsfas is sitting on a student accommodation time bomb, and this issue must be urgently addressed,” said Heyneke.

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Crisis in the making

Despite these warnings, Nsfas launched an accommodation portal in 2024, forcing landlords to register on a system that was not fully operational.

“To make matters worse, the demand for Seas-accredited housing far exceeded the supply of approved facilities,” Heyneke said.

Heyneke added that inexperience and lack of skills among many Nsfas-appointed accreditation agents led to student protests at various campuses early last year.

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Unpaid landlords

Accommodation providers remain unpaid for 2024, though Nsfas reported a surplus of R22.656 billion during the 2022/23 financial statements.

“With the 2023/24 statements yet to be released, it’s unclear whether Nsfas used the surplus. Why were landlords not paid?” Heyneke questioned.

The situation is reminiscent of 2023, when the accommodation contribution was reduced from R60,000 to R45,000 per year, forcing some students to sleep in libraries, classrooms, and streets.

Heyneke warns that similar scenes may unfold in 2025 if the current issues are unresolved.

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Calls for reform

Outa called on Higher Education Minister Nobuhle Nkabane to intervene immediately.

Heyneke stressed that the minister must prevent Nsfas from further endangering students and landlords by continuing its flawed accommodation programme.

He actively warned that escalating protests will lead to injuries, infrastructure damage, and disruption to academic programmes if no action is taken.

“Nsfas’s communication channels have been ineffective for years, and this intervention is long overdue, Heyneke concluded.

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