South Africa’s higher education sector is facing a deepening crisis as students reliant on the National Student Financial Aid Scheme (NSFAS) struggle to access accommodation, with some landlords now allegedly demanding sexual favours in exchange for housing. This shocking revelation comes as Universities South Africa (USAF) and other stakeholders criticise NSFAS for its inability to effectively manage student funding and accommodation disbursements, leaving thousands of students in limbo.
At least seven weeks into the academic year, NSFAS has yet to settle thousands of outstanding accommodation claims for 2024, leaving students stranded and accommodation providers frustrated. Advocacy group Youth Capital’s Nape Senong highlighted the dire consequences of this delay, stating, “Young people end up being homeless or resort to very weird ways of surviving. It plunges the poor into even more poverty.”
The situation has become so desperate that some students, particularly young women, are reportedly being exploited by unscrupulous landlords. While this issue is not new, the current funding delays have exacerbated the problem, leaving vulnerable students with few options.
NSFAS Under Fire for Administrative Failures
Universities South Africa (USAF) chief executive officer Phethiwe Matutu has called for urgent reforms to NSFAS, arguing that the scheme lacks the capacity to handle its massive responsibilities. “The centralisation of NSFAS needs recapitalisation, which means better staffing and infrastructure. NSFAS is a small organisation which is expected to administer R50-billion. A lot is at stake, so it is important that money is paid at the appropriate time,” she said.
Matutu believes that universities should play a greater role in managing student funding and accommodation disbursements. “The issue of providers not being paid upfront does not make sense. They must pay rates, staff, taxes and all sorts of bills,” she added. USAF is advocating for institutions of higher learning to take up the responsibility of disbursements and the accreditation of student accommodations.
Private Student Housing Association chief executive Kagisho Mamabolo echoed these concerns, expressing frustration with NSFAS’s handling of the crisis. “They are sending an email address where we need to send claims, but we cannot be doing this repeatedly. It does not give us confidence that NSFAS is serious about resolving this matter. They must take responsibility and inform us why they cannot resolve the matter,” Mamabolo said.
A System in Crisis
NSFAS, which is responsible for facilitating the application processes and disbursements of both tuition and accommodation fees, has been plagued by administrative challenges. NSFAS spokesperson Ishmael Mnisi acknowledged the delays, stating that the scheme had initiated a reconciliation of accommodation claims and disbursements due to duplications in some instances.
“In 2025, NSFAS is implementing measures to ensure certainty and clarity about claims and disbursements,” Mnisi said. However, this assurance offers little comfort to students and accommodation providers grappling with the current crisis.
Preliminary findings from a campaign by Youth Capital, called #FIXNSFAS, reveal that accommodation remains a critical issue for students. Senong emphasised the importance of NSFAS in providing opportunities for disadvantaged youth. “For us, NSFAS is important because it gives a lot of poor children an opportunity to get tertiary education, which gives them the ability to find work,” he said.
Students Bear the Brunt
The delays in NSFAS payments have left many students in precarious situations. Without access to accredited accommodation, some have been forced to seek alternative housing, often in unsafe or exploitative environments. Reports of landlords demanding sex in exchange for accommodation have surfaced, highlighting the vulnerability of students who rely on NSFAS funding.
One student, who asked to remain anonymous, shared her experience: “I had no choice but to accept the landlord’s demands because I had nowhere else to go. NSFAS had not paid, and I couldn’t afford to rent a place on my own.”
This exploitation is not only a violation of students’ rights but also a stark reminder of the systemic failures within NSFAS. Matutu believes that universities can play a key role in addressing these challenges by mobilising administrative teams, including students, to tackle the red tape.
Calls for Systemic Reform
Stakeholders are urging NSFAS to collaborate with universities and other organisations to improve its capacity and efficiency. Matutu stressed the need for a decentralised approach, stating, “The organisation believes that the scheme should share responsibilities with the universities instead of trying to spearhead all procedures with a limited staff complement.”
Mamabolo also called for greater accountability from NSFAS, emphasising the need for clear communication and timely payments. “They must take responsibility and inform us why they cannot resolve the matter,” he said.
As the crisis deepens, the plight of South Africa’s students underscores the urgent need for systemic reform. Without immediate action, thousands of students will continue to face homelessness, exploitation, and the risk of dropping out of tertiary education altogether.
