NSFAS debt crisis | R27 million still owed as students face eviction threats

As the National Student Financial Aid Scheme (NSFAS) urges private accommodation providers not to evict students, the CEO of the Private Student Housing Association, Kagisho Mamabolo, has revealed that NSFAS still owes R27 million in outstanding debt.

Last month, the association expressed concerns that students may face housing challenges when universities reopen, citing NSFAS’s unpaid debt of R44 million for student accommodation from the previous year.

Although NSFAS committed to settling the debt and urged accommodation providers to submit claims for processing, Mamabolo acknowledged that while partial payments have been made, R27 million of the debt remains unpaid.

“We had the administrators' commitment that within 14 days, the R44 million owed to us would be settled. It has been partially paid, but our members are still owed R27 million of the R44 million. This is frustrating some of our members,” Mamabolo told Newzroom Africa.

Reports indicate that payment delays have led to some private accommodation providers threatening to evict students over non-payment, prompting NSFAS to urge landlords not to take such action.

“We are deeply concerned about reports of some landlords threatening to evict students. While we are engaged in discussions to find amicable solutions, we appeal to landlords with outstanding payments not to evict students. NSFAS is committed to resolving all legitimate claims,” the scheme said in a statement.

In an update, NSFAS also revealed that the payment deadline has been moved forward from April 4, 2025, to March 31, 2025.

“We are pleased to announce that the payment date has been moved up from April 4, 2025, to Monday, March 31, 2025. This adjustment reflects our commitment to provide timely and efficient support to students who rely on NSFAS funding for their accommodation needs,” the scheme said.

IOL previously reported a surge in demand for student accommodation in South Africa, with over 500,000 beds needed to address the shortfall in the sector.

Mamabolo expressed confidence in the new leadership of NSFAS, noting that he hopes the organisation can turn things around.

“We welcome the new board. We’ve looked at their profiles and where they come from, and we are confident they can turn NSFAS’s fortunes around. We have seen positive signs, especially with the new CEO, Mr. Waseem (Carrim), who has been communicative since joining the office. He has committed to resolving the R44 million debt by the end of April,” Mamabolo said.