Committee on Higher Education Warns National Student Financial Aid Scheme (NSFAS) Against Cancellation of Student Accommodation

The Portfolio Committee on Higher Education has expressed concern about the cancellation of student accommodation agreements with unaccredited providers, warning that mid-term disruptions unfairly affect students.

The committee was briefed by the newly appointed board of the National Student Financial Aid Scheme (NSFAS) for an update on student appeals, funding decisions for the 2025 academic year, the disbursement of allowances, student accommodation and other related matters.

Committee Chairperson Mr Tebogo Letsie said: “We fully support the cancellation of unaccredited accommodation and as the committee we concur on that point. However, when cancellations happen during the academic term or trimester, it creates serious challenges. Students are left stranded, unable to graduate, and burdened with debt for decisions they had no control over. We must urgently move toward ensuring that all accommodation is accredited.”

The committee also highlighted that in the 2024 financial year, NSFAS’s mid-year defunding of students caused significant disruptions. Institutions, having already budgeted for registered students, were left financially exposed, triggering a chain reaction of financial instability.

Members of the committee stressed that NSFAS’s operational shortcomings are exacerbating student debt levels and jeopardising students’ academic success. The committee said the timing of NSFAS decisions, often at critical academic periods, was concerning.

Lastly, the committee emphasised the urgent need to strengthen communication between NSFAS, higher education institutions and students, noting that delays and miscommunication in funding decisions continue to unfairly prejudice students.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.