NSFAS Debt Crisis – R27 Million Still Owed as Students Face Eviction

NSFAS Debt Crisis – R27 Million Still Owed as Students Face Eviction. The ongoing NSFAS debt crisis has left students in a precarious position, with many facing possible eviction due to outstanding payments owed to private accommodation providers. Despite previous commitments to settle debts, the National Student Financial Aid Scheme (NSFAS) still owes R27 million, causing frustration among property owners and jeopardizing student housing stability.

Private Accommodation Providers Demand Payment

The Private Student Housing Association has voiced concerns over NSFAS failure to fully settle its debts. Last year, NSFAS owed private accommodation providers a staggering R44 million for student housing. Although some payments have been made, R27 million remains unpaid, causing financial strain on landlords and creating uncertainty for students who rely on these accommodations.

Kagisho Mamabolo, CEO of the Private Student Housing Association, expressed disappointment over the delays. “We had the administrators’ commitment that within 14 days, the outstanding R44 million would be settled. While partial payments have been processed, our members are still owed R27 million. This ongoing issue is frustrating for our stakeholders,” he told Newsroom Africa.

Eviction Threats Loom Over Students

With the outstanding debt still unresolved, some private landlords have threatened to evict students due to non-payment. These threats have sparked widespread concern, leading NSFAS to appeal for patience from accommodation providers.

“We are deeply concerned about reports of landlords threatening to evict students. While discussions are ongoing to find amicable solutions, we urge landlords not to take action against students. NSFAS remains committed to settling all legitimate claims,” NSFAS stated.

Revised Payment Deadline Announced

In a bid to reassure stakeholders, NSFAS has moved its payment deadline forward from April 4, 2025, to March 31, 2025. This shift aims to provide faster financial relief to accommodation providers while ensuring that students are not displaced due to unpaid housing fees.

“We are pleased to announce that the payment date has been adjusted from April 4, 2025, to March 31, 2025. This change reflects our commitment to providing timely and efficient financial support to students who depend on NSFAS funding for accommodation,” the scheme confirmed.

South Africa Student Accommodation Crisis

The student accommodation sector in South Africa is currently facing a significant shortage, with an estimated 500,000 beds needed to meet demand. The NSFAS payment delays further exacerbate the situation, as landlords become reluctant to continue housing students under uncertain financial conditions.

With the country’s growing student population, the lack of sufficient and affordable accommodation has emerged as a critical issue. Many students struggle to secure safe and suitable housing, particularly those from historically disadvantaged backgrounds who rely on NSFAS funding to cover their expenses.

Optimism Under New NSFAS Leadership

Despite ongoing challenges, there is renewed optimism following the appointment of new leadership at NSFAS. Kagisho Mamabolo has expressed confidence in the newly formed board, particularly in CEO Waseem Carrim.

“We welcome the new board. We’ve reviewed their backgrounds, and we believe they have the expertise to turn things around for NSFAS. The new CEO, Mr. Waseem Carrim, has already demonstrated strong communication and a commitment to resolving the R44 million debt by the end of April,” Mamabolo stated.

Conclusion

The NSFAS debt crisis remains a pressing issue, affecting both students and private accommodation providers. With R27 million still owed, many students continue to face eviction threats, raising concerns about the long-term stability of student housing in South Africa. While NSFAS has committed to resolving outstanding payments and revised its payment deadline, the success of these efforts will depend on efficient execution and sustained commitment from all stakeholders.