NSFAS disputes R62 million housing debt amid accommodation crisis

702 and CapeTalk's Africa Melane chats with spokesperson of the National Student Financial Aid Scheme (NSFAS), Ishmael Mnisi.

Listen below:

The student housing sector is under financial strain as claims of over R62 million in unpaid rent by the National Student Financial Aid Scheme (NSFAS)  threaten nearly 2,800 student beds across South Africa. 

Private landlords and accommodation providers report arrears dating back to January 2024, with some operators - especially smaller and black-owned businesses - facing closure. 

Universities like Cape Peninsula University of Technology (CPUT) have had to resort to emergency housing as a result.

NSFAS, however, disputes the R62 million figure. 

Mnisi says the organisation cannot confirm the total, as payments are made directly to individual landlords, not in aggregate. 

"We further requested that the Private Student Housing Association furnish us with the details on how they ultimately arrived to this." 

- Ishmael Mnisi, NSFAS Spokesperson 

He explains that monthly payments are made and that delays are often linked to discrepancies, such as students in unaccredited or incorrectly graded properties, non-compliant landlords, or errors in submitted invoices. 

Mnisi stresses that NSFAS engages in monthly verifications with landlords, institutions, and students before releasing funds.

"Our intention is not to leave any landlords unpaid and students vulnerable. We go all out to investigate the claims that would have been submitted by all the landlords, and we liaise with the landlords themselves... we liaise with the institutions, including some of the students, to verify the claims that landlords would have submitted." 

- Ishmael Mnisi, NSFAS Spokesperson 

"It is important for us to account for each and every cent that we pay as NSFAS."

- Ishmael Mnisi, NSFAS Spokesperson 

The Private Student Housing Association (PSHA) has given NSFAS until the end of this month to settle outstanding payments, warning that without urgent action, the housing of thousands of students could be at risk.

Scroll up to listen to the full conversation.