In recent months, hundreds of South African students have been plunged into housing instability as the National Student Financial Aid Scheme (NSFAS) struggles to meet its payment obligations. NSFAS, which funds accommodation and living expenses for financially disadvantaged students, has fallen behind on rent payments, causing widespread evictions. As landlords lose patience and exam season intensifies, many students are left with no choice but to seek temporary refuge in police stations or rely on friends for shelter.
This crisis has struck particularly hard in regions like Tshwane and Gqeberha, where numerous students reported being evicted from their university residences and private accommodations. For students already under pressure to perform academically, the additional burden of homelessness creates devastating emotional and educational consequences. As they scramble to secure a safe place to stay, their ability to focus on critical exams is significantly compromised.
Beyond the immediate housing concerns, this situation highlights systemic flaws within NSFAS’s administrative processes, including delays in fund disbursement and poor communication. Even though government officials have acknowledged the crisis and pledged to resolve outstanding payments, the damage to many students has already been done.
Widespread Impact Across Universities and Regions
At Nelson Mandela University (NMU), students shared stories of being evicted after NSFAS failed to pay two months’ rent. Many were left scrambling to find temporary accommodation, with no family nearby to assist. One student explained, “I’ve found a student to stay with for now, but I’m worried exams are coming, and without a secure place, how can I study?”
In Tshwane, the confusion deepened when NSFAS deposited R13,800 into student accounts, but only R2,200 was meant for personal use, while R10,800 was designated for rent. Without clear instructions, many students used the funds for essentials like food and transport, not realizing that landlords were waiting for the rent portion. This misunderstanding triggered evictions from major student housing centers like Foundation, Boikhutsong, Thabo Sehume, and Riverside.
Meanwhile, some students ended up seeking safety at local police stations, reflecting the severity of the crisis. For many, this is not merely an administrative failure, it’s a humanitarian issue.
Key Financial Breakdown
| Category | Amount (ZAR) |
|---|---|
| Total deposited to students | R13,800 |
| Portion for rent | R10,800 |
| Portion for living allowance | R2,200 |
| NSFAS outstanding to landlords (2024) | R27 million |
Landlords’ Growing Frustration and Financial Strain
Landlords and accommodation providers, too, are feeling the pinch. According to Kagisho Mamabolo, CEO of the Private Student Housing Association (PSHA), the situation has reached a breaking point. “Even if you’re paid this month, there’s no guarantee you’ll be paid next month,” Mamabolo explained. This unpredictability is pushing landlords to reconsider their participation in NSFAS-related housing contracts, as some now face the threat of bank repossession.
One anonymous housing provider stated that without consistent payments, they cannot continue offering rooms to students. “Our properties are being deregistered by the bank. We just can’t carry unpaid housing into the next month anymore,” the provider admitted. The uncertainty has caused some landlords to terminate lease agreements prematurely, further reducing the pool of available student housing.
The core issue is not only the delay but the structural inefficiencies caused by NSFAS’s adoption of “solution partners” — private entities tasked with verifying student eligibility and processing payments. While designed to prevent fraud, the system has created bottlenecks, leaving both students and landlords in limbo.
Major Challenges for Landlords
- Delayed Payments: Months of unpaid rent, sometimes amounting to millions.
- Bank Pressure: Increased risk of property repossession due to mounting debts.
- Lease Violations: NSFAS failing to uphold lease agreements with providers.
- Administrative Bottlenecks: Payment verification delays caused by third-party partners.
Government and NSFAS Response
NSFAS spokesperson Ishmael Mnisi emphasized that the payment verification process is essential to avoid fraudulent claims, noting that all outstanding payments are under review. However, affected students and landlords find this explanation inadequate. The delays have already caused irreversible harm, disrupting students’ academic lives and threatening landlords’ financial stability.
Higher Education Minister Nobuhle Nkabane recently addressed the issue, acknowledging the “unacceptable delays” and promising that all outstanding payments for the 2024 academic year would be resolved by April 30, 2025. She assured stakeholders that the government is working closely with NSFAS to clear backlogs and streamline future payments.
However, many stakeholders remain skeptical. Previous promises have gone unfulfilled, and with evictions already taking place, the urgency has surpassed the point of waiting for bureaucratic solutions.
Timeline of Key Events
| Date | Event |
|---|---|
| January–March 2025 | NSFAS payment delays accumulate across institutions |
| April 2025 | R27 million debt reported; evictions begin nationwide |
| April 25, 2025 | Minister Nkabane pledges to resolve payments by April 30 |
| May 2025 | Many students still waiting for payment and housing |
Impact on Students’ Academic and Emotional Well-being
For students, the timing of this crisis could not be worse. As final exams approach, the stress of losing their housing, navigating uncertain living arrangements, and managing tight finances takes a toll on mental health. Many students are now balancing not just their studies, but the urgent need to secure safe accommodation on short notice.
Academic advisors and student leaders are increasingly concerned about the long-term impacts. Will students be able to pass their exams? Will some drop out entirely due to instability? Without rapid intervention, these risks could escalate, leading to a loss of educational opportunities for some of the country’s most vulnerable learners.
Urgent Actions Required
- Emergency Accommodation: Universities must provide temporary shelter for displaced students.
- Clear Communication: NSFAS must issue detailed guidance on payment structures and timelines.
- Debt Restructuring: Landlords and banks should collaborate on temporary debt relief measures.
- Student Support Services: Increased mental health and academic counseling during this period.
- Oversight Reform: Strengthen monitoring and accountability of NSFAS payment systems.
Can Trust Be Rebuilt?
The NSFAS crisis is not just a financial challenge it is a critical test of trust between students, educational institutions, landlords, and the government. While authorities have pledged to fix payment delays, the true test lies in whether the system can rebuild credibility and deliver reliable support going forward.
Without fundamental reforms, South Africa risks not only immediate academic disruption but also a long-term decline in the confidence that students and providers place in public financial aid systems. The next few months will be decisive: either NSFAS stabilizes its processes and restores faith in its services, or it continues on a path of instability, leaving countless students and housing providers in the lurch.