During the first quarter, NSFAS has made three major disbursements to accommodation providers, amounting to over R1.1 billion and benefitting more than 100,000 students.
Image: Ayanda Ndamane / Independent Newspapers
The National Student Financial Aid Scheme (NSFAS) has released R1.1 billion to private accommodation providers housing more than 100 000 students during the first quarter of the year.
The latest tranche of payments was processed last week as the student aid body moves to bring accommodation payment functions in-house, a requirement it is legally obliged to implement by 2026.
According to NSFAS, the new approach has helped resolve several longstanding issues, including delays by institutions in confirming student registrations, the misclassification of students as recipients of the transport allowance, and uncertainty around accommodation accreditation.
“To date, 95% of accommodation providers listed on our solution partner portals have had their banking details successfully verified and are now included in direct payments for 2026,” NSFAS spokesperson Ishmael Mnisi said in a statement yesterday.
“For the remaining providers, NSFAS is conducting one-on-one engagements to ensure full integration into the direct payment system.”
Mnisi said the scheme remained committed to resolving outstanding challenges and implementing a more predictable and transparent payment system by 2026.
“NSFAS recognises the operational pressures faced by accommodation providers, including rising utility costs and municipal challenges. As a result, the scheme remains committed to working collaboratively with sector associations and solution partners to resolve these outstanding issues by finalising the 2026 rental rates and implementing a predictable, transparent payment system.
"NSFAS remains committed to prompt, case-by-case resolution of all payment challenges, and we encourage accommodation providers experiencing difficulties to contact us directly for assistance,” he said.
The commitment comes as newly appointed administrator Hlengani Mathebula begins efforts to stabilise the embattled scheme, with governance reform and stronger internal controls identified among his immediate priorities.
“Prof Mathebula is assuming this role at such a pivotal moment for NSFAS and the broader higher education and training sector. NSFAS is a cornerstone of South Africa’s commitment to social justice, as it provides access to higher education and training for young people from economically disadvantaged backgrounds.
“For many families, NSFAS is the bridge between exclusion and opportunity. Its stability and integrity are essential for South Africa’s overall future,” NSFAS said.
His mandate also includes addressing audit and consequence-management weaknesses; accelerating ICT and systems integration reforms; stabilising student funding operations; enhancing oversight of student accommodation and resolving appeals and service-delivery backlogs.
Mathebula currently serves as Director and Head of the Tshwane School for Business and Society at Tshwane University of Technology, and has held a variety of professorial and Senate leadership responsibilities.
He has over three decades of experience in governance, financial management, regulatory oversight, and institutional leadership across both public and private sectors.
"Professor Mathebula is committed to forging stronger ties with relevant stakeholders to enable real co-creation and support for this vital asset," said Mnisi.