'Incapacity of NSFAS is on a trajectory that could collapse the system' - PSHA

Africa Melane (in for John Maytham on CapeTalk) speaks with Kagisho Mamabolo, CEO of the Private Student Housing Association (PSHA).

Listen below:

TVET colleges are raising the alarm after a recent NSFAS payment error.

The financial aid scheme accidentally paid accommodation funds to students, instead of the service providers,

Many students realised the error and were able to use the money responsibly, however some were in a position where they had to prioritise food, transport and other essentials.

This has left them unable to pay rent and facing possible eviction.

The PSHA has also slammed the situation, saying it is destabilising a system that is already fragile.

“We are worried. We think this proves that the incapacity of NSFAS is on a trajectory that will collapse the system.”

- Kagisho Mamabolo, Private Student Housing Association CEO

RELATED: NSFAS disputes R62 million housing debt amid accommodation crisis

Mamabolo says this system means that the students do not have any lease agreement with the landlord, that agreement sits with NSFAS.

This means students were not legally obliged to pay their landlords when NSFAS paid them.

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