NSFAS Warns Students to Pay Landlords or Face Eviction

NSFAS Warns Students to Pay Landlords or Face Eviction. The National Student Financial Aid Scheme (NSFAS) has issued a firm warning to all NSFAS-funded students across South Africa, urging them to immediately settle accommodation fees with their landlords or face potential eviction and future financial penalties. The advisory follows a wave of confusion that emerged after a R13 800 student allowance was disbursed on 4 April 2025.

Accommodation Allowance Breakdown-R10 800 Meant for Rent

NSFAS clarified that R10 800 out of the R13 800 total allowance was strictly allocated for student accommodation, not for groceries, transport, or personal spending. This amount must be used exclusively to cover rent for those residing in NSFAS-accredited accommodation. Failure to do so could result in serious consequences.

“Students are urged to settle their accommodation fees with landlords as a matter of urgency,” said NSFAS in its official statement.
“They must also submit proof of payment to their college financial aid officers without delay.”

This development is especially critical as many students risk eviction from their residences due to unpaid rent. NSFAS emphasized that neglecting rental obligations may also lead to deductions from future student allowances, which will only add to students’ financial burdens.

Verification Challenges Created Confusion

According to NSFAS, the primary cause of the confusion was a breakdown in the verification process used to determine which students qualified for the accommodation support.

NSFAS relies heavily on a “master list” generated by its Solution Partners (SPs)—third-party service providers tasked with managing applications and allowances. Institutions are required to validate these lists and confirm student eligibility before any payments are made.

However, the oversight resulted in certain students, who were not confirmed or listed, still receiving the R10 800 accommodation allowance. This led to the unintended disbursement of funds to students who might not reside in NSFAS-approved accommodation, further complicating the situation.

“Some students who received direct payments were not included in the global list and were not confirmed by their institutions in time,” NSFAS explained.

SRCs and Institutional Leaders Must Assist

NSFAS is now calling upon Student Representative Councils (SRCs), student leaders, and campus organisations to educate students on the appropriate use of allowances. Their involvement is crucial to avoid further miscommunication and to ensure that all students comply with funding guidelines.

Institutional management has also been instructed to remind all students living in NSFAS-accredited residences to make the necessary rental payments without delay. This collaborative approach is vital to maintaining a stable learning environment for everyone.

“Institutional leadership must inform students in NSFAS-accredited accommodation to pay their landlords. This will avoid unnecessary inconveniences,” the agency noted.

Institutions Already Received Full Remittances

NSFAS has confirmed that all necessary payments have been made to the respective institutions, placing the responsibility of fund distribution squarely on colleges and universities.

Students are reminded that it is their duty to:

• Pay rent promptly using the R10 800 accommodation portion.
• Submit proof of payment to their financial aid offices.
• Seek assistance from SRCs or campus aid offices if they’re unsure of their responsibilities.

Conclusion

Thousands of South African students depend on NSFAS funding to pursue higher education. However, this incident highlights the importance of transparency, communication, and responsible financial conduct in the disbursement and use of public funds. With limited accommodation and resources available, allowances must be used as intended.