Student accommodation: NSFAS ready to settle outstanding payments before academic year starts
The financial aid scheme came under fire in 2023 over payment disputes following changes to its guidelines for private student accommodation.
Freeman Nomvala. Picture: X/myNSFAS
JOHANNESBURG – The National Student Financial Aid Scheme (NSFAS) says it’s ready to settle outstanding rental payments for beneficiaries before the start of the 2025 academic year.
The financial aid scheme came under fire in 2023 over payment disputes following changes to its guidelines for private student accommodation.
These included a R45,000 annual cap and the exclusion of accommodation fees for students enrolled in modules worth less than 60 credits.
On Thursday, NSFAS administrator Freeman Nomvalo and Higher Education Minister Nobuhle Nkabane kicked off a two-day stakeholder meeting in Benoni to evaluate readiness for the new academic year.
Between 2019 and 2023, NSFAS incurred nearly R60 billion in irregular expenditure linked to student disbursements. Stricter regulations for private landlords also left many students without accommodation.
Administrative inefficiencies further plagued the scheme, resulting in errors in financial statements and adverse audit opinions.
But since his appointment in April 2024, Nomvalo said these issues are being addressed.
“We have met the private student housing association and encouraged them to provide a list of outstanding rentals. We will pay where there is a legitimate claim.”
On Thursday, Nomvalo is expected to join Minister Nkabane and other stakeholders for further discussions.