Financial crisis at NSFAS: R48 million owed to accommodation providers

The National Student Financial Aid Scheme (NSFAS) is currently facing a serious financial crisis, owing R48 million to more than 600 accommodation service providers for the 2024 academic year. 

This troubling situation was revealed when Higher Education and Training Minister Buti Manamela addressed questions from DA MP Delmaine Christians, who sought information on the number of landlords with unpaid claims.

Christians asked about the total number of student accommodation providers or landlords that have valid outstanding claims that remained unpaid to date.

According to Manamela, a total of 655 accommodation providers have valid claims pending due to discrepancies in the invoices submitted for the academic year 2024.

In his response, Manamela detailed how the NSFAS has identified some discrepancies in the 2024 invoices, prompting requests for resubmissions.

“The resubmitted invoices have been validated and verified, and the total value of the claims is R48 million, with R18 million for the TVET college providers and R30 million for university providers,” he said.

While these payments were originally scheduled for the end of last month, Manamela noted that the outstanding claims are currently undergoing validation and verification processes.

“The outstanding claims are currently undergoing validation and verification processes. Any valid claims for 2025 will be included in a mop-up payment scheduled for the end of November 2025.”

Christians queried about the long-awaited online platform for bed identification, accreditation, and grading of student accommodation sites.

“What is the timeline for full rollout across all provinces, which institutions and/or service providers are already integrated, and what mechanisms have been put in place to audit the system for accuracy?” she asked.

According to Manamela, the NSFAS was not implementing a new online platform for student accommodation.

“The student accommodation function is undergoing a legal review. This review will guide the next steps,” he said.

“The NSFAS has also developed a student accommodation protocol to ensure eligible students have access to safe and affordable accommodation that is conducive to learning.” 

The minister said law firm ENS Africa was conducting the legal review into student accommodation and third-party partnerships.

The legal review of two procurement processes relating to student accommodation function for the provision of an online student accommodation solution for NSFAS students and the panel of service providers to accredit student accommodation for a period of five years.

The legal review also examines NSFAS's statutory mandate concerning student accommodation functions and the termination of service level agreements with providers.

It also reviews the draft conceptual framework for student accommodation and student accommodation policy, which sets out the NSFAS's intended approach for delivering student accommodation services.

Manamela said the findings of the review will be tabled before the Portfolio Committee on Higher Education and made public once approved for release by the NSFAS board of directors.

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