UCT SRC calls for action as Cape Town rental costs exceed NSFAS cap
Some students are unable to graduate or pursue postgraduate studies because of accommodation-related fee blocks.
Image: Bheki Radebe/Independent Newspapers
UCT Student Representative Council (SRC) has appealed directly to National Student Financial Aid Scheme (NSFAS) Acting CEO to intervene in what it describes as a growing student debt crisis caused by the accommodation cap.
The council warns that some students are unable to graduate or pursue postgraduate studies because of accommodation-related fee blocks.
In a letter sent to Waseem Carrim earlier this month, the SRC requested a meeting with NSFAS leadership to discuss the impact of the cap, arguing that while it was introduced to protect the funding scheme from inflated accommodation costs charged by some private landlords, it is now having severe consequences for students studying in Cape Town.
"The SRC understands and acknowledges the original intent behind the implementation of the cap. We recognise the necessity of protecting NSFAS from the deliberate inflation of accommodation prices by certain private providers," the SRC wrote.
The accommodation cap was introduced in 2023 after concerns that escalating accommodation costs could place unsustainable pressure on NSFAS funding.
According to the SRC, UCT was able to absorb accommodation shortfalls during the first year of the policy using its own funds. However, the university was unable to continue covering those costs in 2024 and 2025, leaving students to make up the difference themselves.
The SRC says many students now face accommodation shortfalls of between R30 000 and R50 000, that often results in fee blocks preventing them from registering for the next academic year, graduating or enrolling for postgraduate studies.
The student body argues that the problem is particularly severe in Cape Town, where rental costs have continued to rise and significantly exceed the metropolitan accommodation cap of R55 000.
"While the metros have been capped at a higher rate R55 000, this cap is insufficient in some regions, especially in the City of Cape Town, particularly areas surrounding UCT. The local rental market makes the current cap unfeasible for many students," says the SRC.
According to the SRC, the impact is becoming increasingly visible among final-year students.
The SRC said students who qualify for NSFAS often come from households that cannot afford tertiary education and rely entirely on financial aid to complete their studies and improve their economic circumstances.
"However, due to the current accommodation cap, a UCT medical student starting their degree today will either leave the university owing over half a million rand or not be able to graduate because of the debt incurred due to the accommodation cap alone," the council warned.
Student leaders further argue that the issue extends beyond NSFAS beneficiaries. They say negotiations with university management and Council over registration concessions increasingly become focused on students carrying accommodation-related debt, limiting the institution's ability to assist other financially vulnerable students.
After receiving the request, NSFAS referred the SRC back to institutional channels, advising that any review of funding guidelines would require engagement between the university, institutional service practitioners and relevant departments.
However, the SRC said those channels had already been exhausted.
NSFAS spokesperson Ishmael Mnisi acknowledged receipt of media questions but had not responded to the issues raised by the time of publication.