NSFAS Fails to Pay Rents Landlords Evict Students

NSFAS Fails to Pay Rents Landlords Evict Students. The National Student Financial Aid Scheme (NSFAS) is at the center of a growing crisis in South Africa’s higher education sector. Thousands of students are facing eviction from their accommodations due to delayed payments from NSFAS to landlords. This situation has sparked widespread concern among students, landlords, and educational institutions, highlighting systemic issues within the student funding framework.

Scope of the Crisis

Reports indicate that over 7,000 students are at risk of eviction as NSFAS owes the Private Student Housing Association (PSHA) approximately R44 million from the 2024 academic year. The PSHA, representing landlords housing more than 80,000 students, has warned that without immediate payment, they will be unable to continue providing accommodation.

In Johannesburg, more than 300 students from the Central Johannesburg TVET College were locked out of their residences by the landlord, Urban Circle, after NSFAS failed to pay rent for over six months. The landlord reported being owed R6 million, having only received a partial payment of R907,000, leaving a significant shortfall.

Impact on Students

The delayed payments have left many students in precarious situations. Some have been forced to sleep in common areas of university campuses, while others have had to rely on humanitarian aid for necessities. At the University of the Western Cape, over a hundred students protested against the housing crisis, highlighting the dysfunction of the NSFAS accommodation platform and the lack of sufficient NSFAS-approved housing facilities.

Students have expressed frustration over the recurring issues with NSFAS. One student, Gift Zulu, stated, “NSFAS has made it a norm for us students to have anxiety this time of the year because we have to wait for their late payments every time.”

Landlords’ Perspective

Landlords have reported significant financial strain due to NSFAS’s delayed payments. The PSHA has emphasized that the non-payment affects not only their ability to provide housing but also impacts their capacity to pay for utilities, staff, and maintenance. Some landlords have resorted to demanding “top-up” fees from students to cover the shortfall, further burdening financially vulnerable students.

In some cases, landlords have been accused of exploiting students by demanding sexual favors in exchange for accommodation. NSFAS has condemned such actions and has vowed to investigate and take decisive action against implicated landlords.

NSFAS’s Response

NSFAS has acknowledged the issues and stated that efforts are underway to resolve the payment delays. The scheme has urged landlords to register their accommodations on the NSFAS portal to facilitate payments. However, landlords have criticized the portal for being dysfunctional and have called for reforms in the system.

In response to the exploitation allegations, NSFAS, in collaboration with the Department of Higher Education and Training, has launched investigations and promised to assist affected students in filing charges against perpetrators.

Calls for Reform

The Organisation Undoing Tax Abuse (OUTA) has called for a radical shift in NSFAS’s accommodation management. They argue that the current system, which involves universities and colleges managing accommodation, is flawed, leading to limited student beds and widespread student protests. OUTA urged the Minister of Higher Education to terminate NSFAS’s involvement in the accommodation sector.

Conclusion

The NSFAS accommodation crisis underscores the urgent need for systemic reforms in South Africa’s student funding mechanisms. Ensuring timely payments to landlords, safeguarding students from exploitation, and providing adequate housing are essential steps toward stabilizing the higher education environment. Stakeholders must collaborate to address these challenges and uphold the rights and welfare of students across the country.