The Portfolio Committee on Higher Education, Science and Innovation has raised serious concerns about the cancellation of student accommodation agreements with unaccredited providers during the academic term. They warned the National Student Financial Aid Scheme (NSFAS) that this decision could unfairly affect students.
The government briefed the committee this week on the progress of the funding decisions for the 2025 academic year, the disbursement of allowances, student accommodation, and other related matters.
NSFAS provides comprehensive bursaries and student loans to deserving students enrolled in approved courses at universities and TVET colleges. This funding covers tuition and registration fees. Students also receive several allowances for food, accommodation, and learning materials.
Cancellation of Unaccredited Accommodation
Committee Chairperson Tebogo Letsie says while they support the cancellation of unaccredited accommodation contracts, they criticised the timing of the cancellations. They fear that students will face the unintended consequences of this decision, which include not having a place to live while they study.
When cancellations happen during the academic term or trimester, it creates serious challenges. Students are left stranded, unable to graduate, and burdened with debt for decisions they had no control over.
Letsie says NSFAS must urgently move toward ensuring that all accommodation is accredited.
NSFAS Defunding Students
The committee also criticised NSFAS’s mid-year defunding of students during the 2024 financial year. The defunding decisions not only affected students but also the institutions they attend.
They explained that institutions that had already budgeted for registered students were left financially exposed, resulting in broader financial instability across the higher education sector.
Members of the committee also expressed their concern regarding NSFAS’s ongoing operational issues as they contributed to rising student debt and undermined academic success.
NSFAS's operational shortcomings are exacerbating student debt levels and jeopardising students' academic success.
A major concern for the committee was the time it takes NSFAS to declare whether a student will be funded or not.
Calls for Improved Communication
The committee called for improved communication between NSFAS, universities, TVET colleges, and students. It says continued delays and miscommunication regarding funding decisions unfairly prejudices students.
