Student accommodation costs raise funding concerns

Parliament’s Portfolio Committee on Higher Education has raised concerns over the rising cost of student accommodation, warning it is placing pressure on the student funding system.

The committee says the National Student Financial Aid Scheme (NSFAS) faces a R15 billion funding shortfall, with funding commitments exceeding the allocation provided by the National Treasury.

WATCH | OUTA CEO Wayne Duvenage says the Gauteng High Court’s decision to suspend the appointment of NSFAS administrator Professor Hlengani Mathebula adds weight to the organisation’s longstanding concerns about governance and accountability at the scheme. pic.twitter.com/Ioy0WwUAx7 — SABC News (@SABCNews) August 17, 2026 The scheme spends about R17 billion a year on student accommodation, with some universities paying as much as R11 000 per student.

The Chairperson of Parliament’s Portfolio Committee on Higher Education, Tebogo Letsie, says these costs are unsustainable.

“The gap continues to grow because basically on student accommodation, NSFAS pays about R17 billion to student accommodation, which is extremely expensive.” “But we have called a meeting on the 28th of August this year to look at this issue of student accommodation; we brought in investors themselves, students, landlords, we brought in real estate people to help us understand why would the student accommodation in some instances be more expensive than the residential places in the same area.” VIDEO | Uncertainty deepens over NSFAS funding crisis: