Parliament hears Nsfas accommodation funding cap has failed to control costs

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South Africa’s Department of Higher Education and Training, represented by Minister Buti Manamela and the National Student Financial Aid Scheme (Nsfas), briefed Parliament’s portfolio committee on the failure of the 2023 accommodation funding cap to control rental costs. The cap, which limits funding to R52,000 in metro areas and R43,000 elsewhere for non-catered housing, was intended to curb rising prices but instead functioned as a price signal for providers to increase rents. Students reported being forced into debt or using personal allowances to cover the resulting shortfalls, while also facing concerns regarding poor building quality and safety. CEO Waseem Carrim noted that Nsfas lacked the rate-setting powers to dictate landlord charges, despite projecting spending of nearly R19-billion on university housing this year.

Consequences

The department recommended a 'reconceptualization' of the accommodation cap and the initiation of an urgent investigation into current accreditation and costing practices. These steps suggest a shift toward an 'evidence-based' model that accounts for regional costs and maintenance requirements to replace the existing, ineffective cap.

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