The National Student Financial Aid Scheme (NSFAS) has denied that it owes R62-million in unpaid accommodation fees.
The scheme refuted these claims after Private Housing Student Association (PHSA), which represents private landlords, claimed that this money is owed from January 2024 to July 2025.
Kagisho Mamabolo, PHSA CEO, said landlords in private accommodation are at financial risk due to the late payments made by NSFAS. Especially those who account for the majority of available beds.
Student housing funding model
“Thousands of students continue to face uncertainty due to delayed NSFAS accommodation payments and the absence of a sustainable student housing funding model,” said Mamabolo.
He said that the housing sector was challenged when it comes to affordability and quality gaps. The capped NSFAS allowances needed to be discussed, he added.
He said the sector will not be able to offer affordable, decent, and legal housing unless serious changes are made soon.
The association’s Mmabatho Sebake told Sunday World that they are still engaging with NSFAS to address the issues. She said they have built a constructive and respectful working relationship.
“As an association, we remain steadfast in our commitment to placing the well-being and safety of students at the heart of all our efforts. Their welfare is not merely a priority for us. It is the guiding principle that shapes our advocacy, decision making, and collaborative engagement,” said Sebake.
NSFAS denies claims
In response, NSFAS denied the alleged debt from January 2024 to July 2025.
NSFAS released a statement highlighting that they do not pay the association but landlords directly. It also said the PHSA has not provided a full breakdown of the alleged outstanding claims.
NSFAS explained that it only processes payments for claims that have passed all verification steps.
They emphasised that delays in payment may happen when students are not funded. Or when their registration data is missing, or institutions have not confirmed the claims.
Payment sent to landlords directly
According to the statement, NSFAS paid over R744-million to landlords in April 2025 to help reduce arrears. It also denied that it has run out of money, saying that all payments depend on valid and confirmed claims.
The organisation claimed to be working with institutions to prevent problems like student evictions.
It also confirmed that it is reviewing the role of third-party middlemen in the payment process. And it promised to improve transparency and efficiency.
