SOWETAN SAYS | NSFAS crisis could derail our children's future

The Private Student Housing Association revealed that NSFAS owed landlords R44m for student accommodation from last year.
The Private Student Housing Association revealed that NSFAS owed landlords R44m for student accommodation from last year.
Image: THULANI MBELE

The ongoing National Student Financial Aid Scheme (NSFAS) payment crisis is not just a bureaucratic issue – it’s a national emergency that threatens the very foundation of SA’s higher education system.

Universities, students, and accommodation providers are bearing the brunt of NSFAS’s delayed payments. Without immediate intervention, this crisis could derail the educational and professional futures of thousands of young South Africans.

At the heart of this crisis are students like Bongani Khumalo from Tshwane University of Technology, who are unable to access their diplomas or academic records due to outstanding fees that NSFAS has yet to settle. Denied access to essential documents, these students cannot apply for jobs, internships, or further studies. Their futures are in jeopardy, with profound mental, emotional, and professional consequences.

This crisis isn’t limited to students alone. Universities are also feeling the financial strain. For instance, the University of Cape Town is still awaiting payment of nearly R19m from NSFAS for the 2024 academic year, affecting over 160 students. Similarly, Rhodes University has been forced to reprioritise its budget and make cuts to operational spending as a result of NSFAS’s unpaid debt.

These delays put the sustainability of these institutions at risk and the ripple effect also extends to landlords who provide accommodation to NSFAS-funded students. With payments missing, many landlords are struggling to cover operational costs. Some have even been forced to evict students or take out loans to stay afloat.

The Private Student Housing Association revealed that NSFAS owed landlords R44m for student accommodation from last year. Its CEO, Kagiso Mamabolo, said that despite numerous promises from NSFAS, no payments have been made, and students will soon be affected if this issue remains unresolved.

This non-payment situation is no longer just an inconvenience – it is a full-blown national crisis. The government’s failure to ensure transparency, improve administrative efficiency, and make timely payments is putting the futures of thousands of students at risk.

In response, universities have been forced to make difficult decisions, including allowing students to register without guaranteed funding – a clear sign of the desperation caused by NSFAS’s ongoing mismanagement.

Urgent intervention is required. Both NSFAS and the government must take full responsibility for fixing the systemic inefficiencies in the student funding system. The livelihoods of students, universities, and accommodation providers depend on it.

The clock is ticking – swift action is necessary to restore confidence in the system and secure the future of SA’s next generation of leaders.


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