JOHANNESBURG — The escalating crisis surrounding the NSFAS accommodation cap has reached a critical juncture, sparking widespread fears of student homelessness as the 2026 academic year progresses. Student leadership bodies, spearheaded by WITS University SRC President Gilbert Nchabeleng, alongside private housing advocates such as Kagisho Mamabolo, are demanding the immediate scrapping of the R52,000 annual funding limit and urgent regulatory intervention to prevent mass evictions and institutional failures.
The Private Student Housing Association reports that evictions are already underway. Kagisho Mamabolo, CEO of the association, stated that a 6% annual rate increase is urgently needed to keep operations afloat. “Our demand is simply that the rate must increase, and we have requested a 6% increase, and it must happen immediately,” Mamabolo explained. He warned that students who left for the first-semester break are being denied re-entry to their residences if they owe money and lack confirmed NSFAS funding.
The financial strain is being acutely felt on the ground. One second-year student revealed that an ongoing NSFAS investigation lasting over four months has left her scrambling to pay more than R6,000 per month. The situation has forced her parents to take out loans to avoid penalties and potential eviction. Students warn that if these funding shortfalls persist, they will exceed their financial limits, be barred from registering for subsequent years, and ultimately be forced to abandon their academics and return home.
In response to the mounting pressure, student leadership bodies from approximately 16 tertiary institutions have united their efforts. They are demanding that university-owned accommodation be subsidized and that private student housing be strictly regulated. Crucially, they are calling for the current NSFAS accommodation cap of approximately R52,000 per annum to be scrapped entirely.
Gilbert Nchabeleng emphasized that the Department of Higher Education and Training, through NSFAS, must eliminate the accommodation cap. He further urged the Competition Commission and the Department of Education to intervene and regulate student accommodation pricing in line with regional rental realities. Nchabeleng pointed out that the current national cap fails to account for geographic disparities, citing the vast cost differences between institutions like the University of Venda, Stellenbosch University, and metro-based universities such as the University of Pretoria.
The financial toll on private landlords is equally severe. Mamabolo revealed that NSFAS owes private landlords approximately R200 million, backdated to 2024, due to a 0% rate increase last year and an unconfirmed rate for the current year. Consequently, several accommodation providers are facing closure. Mamabolo noted that multiple student accommodation properties around the University of Johannesburg are already being auctioned, with more than four association members having shut down entirely due to outstanding NSFAS debt.
The crisis has also drawn political scrutiny. Tebogo Letsie, Chairperson of the Portfolio Committee on Higher Education and Training, recently suggested that student leaders appear to be defending accommodation costs rather than questioning how universities justify such prices in the first place.
Nchabeleng firmly rejected this characterization, expressing disappointment in the committee chair’s remarks. He reminded stakeholders that NSFAS announced in 2023 its intention to report accommodation providers to the Competition Commission to regulate pricing, a promise that remains unfulfilled. Nchabeleng noted that despite previous engagements, including promises of oversight visits to institutions like the University of Cape Town, tangible action has been lacking. Recent protests at the University of Pretoria and University of Johannesburg further highlight the boiling point of this imposed national cap.
Highlighting recent parliamentary oversight findings, Nchabeleng pointed out that intermediary middlemen companies continue to operate within the accommodation mediation space, exacerbating costs. He referenced a comprehensive 2022 report presented to the parliamentary committee that linked the student debt crisis directly to NSFAS financial shortfalls driven by the national cap.
Student leaders have issued a firm deadline, giving Higher Education authorities until mid-August 2026 to table concrete solutions. Their proposed funding model includes the official appointment of the Competition Commission to regulate all student housing. This would ensure university-owned residences are subsidized and not used as profit-generation mechanisms, while privately owned facilities are strictly regulated to protect students from extortionate practices.
As the standoff continues, student leadership remains adamant that NSFAS has repeatedly failed in its mandate. With the August deadline approaching, factions within the student movement are now calling for the organization to be dissolved immediately if the R52,000 cap and outstanding debts are not comprehensively resolved.
