The Student Representative Councils (SRCs) from four leading universities have taken a stand against the NSFAS accommodation cap. The SRCs from Wits, UCT, UJ and Stellenbosch have called the situation a 'deepening crisis' which has led to a 'catastrophic failure".
The National Student Financial Aid Scheme (NSFAS) was originally introduced as a national load scheme, with graduates required to pay back their funding once they were employed and earning over a set limit. However this was changed in 2018, after departing President Jacob Zuma announced at the end of his term that NSFAS funding would now be a full bursary.
This full bursary covered tuition fees at universities or TVET Colleges, accommodation fees, and allowances for students. Critics said at the time that the conversion was not fully costed and sufficient funds were never allocated to NSFAS for their additional liability.
However for the first time students from poor and working class backgrounds could graduate from university or college without owing anything. All they had to do was successfully complete their programmes.
This changed in 2023 when NSFAS introduced a cap on how much they would pay for student accommodation. This was initially set at R45,000 per year, but was later increased depending on the location and whether the residence was catered. Non-catered residences in urban areas are capped at R52,000 per year and in non-metro areas this is only R42,640. Catered residences are capped at R65,993 in metro areas and R56,622 in smaller towns.
These rates do not cover the accommodation costs charged for most university-owned residences, and also the majority of private residences aimed at students.
When appearing in front of the Parliamentary Portfolio Committee for Higher Education in June, UCT leaders denied that they were making a profit on residence fees to students. They said that all income for residences went directly into services, including insourced staff, student life programming, and residence administration.
They reported that there are 3,465 students at UCT alone who owe fees because of the NSFAS accommodation cap. This amounts to R139.5m due this year to the university - and a cumulative R537.4m since the cap was introduced in 2023.
At the same meeting representatives from the Department of Higher Education and Training stated that spending on accommodation with the NSFAS budget was now higher than spending on academics.
In their combined statement the SRC leaders are highlighting that the accommodation cap, "aggressively punished the students from poor backgrounds".
Because of the remnants of spatial apartheid in urban areas many universities were built in previously white-only areas. Residents of areas that are close to the universities are often able to attend the campus while still living at home. Students whose families live further from the university, or in rural areas, are most disadvantaged as they are forced to take residence accommodation, on or near the campus.
Other concerns raised are that the cap does not take notice of regional variations in accommodation rates - and that the distinction between urban and non-urban areas is flawed.
"For example Stellenbosch is classified as a 'non-metro' area, meaning it receives a lower cap, despite its rental market being significantly more expensive that other recognised metro areas. Because of this, Stellenbosch University must apply annualy for this classification to be reviewed, leaving students unsure of the accommodation allowance they will receive."
The statement raised the plight of students who have, "finished their degrees but cannot access their certificates, or graduate due to the debt owed to universities from the NSFAS accommodation shortfall".
"We refuse to accept a system that structurally excludes the poor and working-class students."
The combined SRCs are making three demands of NSFAS and the Department of Higher Education and Training.
1. The complete removal of the NSFAS accommodation cap.
2. Action by the Department of Higher Education and Training and the Competition Commission to regulate student accommodation pricing.
3. The immediate announcement of 2026 NSFAS meal and rental allowance rates.
