NSFAS students won’t pay beyond R45 000 for accommodation while permanent solution sought

University of Pretoria students staged sleep-in protests unhappy with the NSFAS R45 000 cap for accommodation. Picture: Supplied

University of Pretoria students staged sleep-in protests unhappy with the NSFAS R45 000 cap for accommodation. Picture: Supplied

Published Feb 20, 2023

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Pretoria - The impasse regarding the accommodation allowance for National Student Financial Aid Scheme (NSFAS) students at the University of Pretoria has ended, for now.

The SRC said at the weekend that the sleep-in by angry students had come to an end after deliberations with stakeholders. “We announce a temporary solution while working on a permanent solution,” the SRC said.

In terms of the agreement, NSFAS students will stay at their residences without any financial obligation of more than R45 000.

Following the agreement, the SRC said it was convinced no student would be left unhoused. Therefore, it was suspending the demonstration with immediate effect “unless the need arises to reconvene”.

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The students last week said they had no money to top up accommodation fees for the year after NSFAS implemented a new policy to cap the allowance to amounts below the institution’s geo-economic rates.

This led to a sleep-in by students organised by the SRC, outside the institution’s Department of Accommodation and Residency Affairs.

“We are protesting against the R45 000 NSFAS cap because students used to get R60 000 last year; this year they could be expected to pay up to R63 000,” SRC president Njabulo Sibeko said at the time.

He said students would not be able to afford it. Final year student Malexis Makgolego said he would not have the additional R1 500 required for her residence, as her father was deceased and her mother a grant recipient. “I will not have anywhere to live and dropping out at this crucial time to return home may the my only choice.”

Sibeko said they hoped the peaceful demonstration would move authorities to make a decision to benefit students.

Both the students and institution said they were awaiting a decision from NSFAS to grant students exemption from the cap as the area was expensive, or to at least accredit cheaper accommodation. NSFAS spokesperson Kagisho Mamabolo last week said they were looking into the matter with the possibility for the institution to be granted a special exception because of the circumstances.

At that time, the university said it had no money to subsidise the students, but was willing to assist by engaging NSFAS to take the matter seriously.

The university said it too was disappointed with NSFAS’s rejection of the exemption application. University spokesperson Rikus Delport said: “They are shifting the financial burden on to students and the university, yet we are already experiencing financial strain.”

He said the university sent a letter to NSFAS in January requesting it to urgently reconsider in support of students as “the actual cost of both university-owned and accredited accommodation exceeds the capped amount of R45 000”.

“The difference between the actual amount and the capped amount will lead to outstanding amounts on student accounts, which may not be recovered. Accredited accommodation providers could also refuse to place NSFAS students, as the amount is below their actual rates.

“The university is in no financial position to fund the difference for about 12 000 NSFAS students at the university which would amount to approximately R240 million. It would have multiple negative consequences, including making it unaffordable for students to continue with their studies.”

Delport said Higher Education, Science and Technology Minister Dr Blade Nzimande proposed a lower than inflation increase of 5.1% on tuition fees, while the CPI was 7.2% as at the end of December 2022. “The less than inflationary increase exacerbates the financial burden on the university, reducing its ability to fund the difference.”

Load shedding had also placed increased pressure on their operational budget, with year-on-year utility fees having increased by more than the inflation rate, and the cost of diesel to run generators on campuses and residences at approximately R1.5 million a day for Stage 3, and R2 million a day on Stage 4.

Delport said: “The university will, as a matter of urgency, work with the SRC to find alternative accommodation and accredit more affordable accommodation.

Where this accommodation is not located close to our campuses, we will be looking at possibly making safe transport available.”

NSFAS students staying in residences will be allowed to continue their stay while the university, together with the students, explored workable solutions to address the shortfall.

Pretoria News