Student Accommodation Providers South Africa (SAPSA) has raised urgent concerns over unpaid rentals owed by the National Student Financial Aid Scheme (NSFAS), warning that the sector faces potential collapse without immediate intervention.
Julian King, Chairperson of SAPSA, confirmed that accommodation providers are owed nearly a billion rand, with outstanding payments dating back to 2024, extending through 2025, and into portions of 2026. Despite repeated engagements with the Higher Education Minister and written correspondence, King stated that no substantive response or resolution has been forthcoming.
“The budget for student accommodation providers definitely seems like it is dispersed to NSFAS,” King explained. “I think internally, how the disbursements of payments then goes creates the challenge.” He noted that an entity with over 30 years of operational history should be capable of resolving historic rental payment issues, yet clarity on outstanding amounts remains elusive.
The situation has intensified following the decision to place NSFAS under administration. While the move has been welcomed by some as a step toward accountability, King emphasized that it has not alleviated the financial strain on private accommodation providers. “We are still not able to have clarity with regards to where is the outstanding rental payments due,” he said.
The payment delays, often stretching 60 to 90 days, have triggered a cascade of operational challenges. Accommodation providers report being unable to pay for essential services, including security and cleaning, placing student safety and well-being at risk. King highlighted that some providers are closing their doors, while security companies have withdrawn services from properties.
Students, who rely on NSFAS-funded accommodation, are increasingly affected. King noted that his office in Queensbury is inundated daily with calls from both providers and students raising urgent concerns. “Accommodation providers, our members in SAPSA, continue to try their best to keep the lights on, to keep services running, but without a sustainable payment solution across the country, to date, that is not possible,” he stated.
King has repeatedly called for a structured stakeholder engagement involving the Department of Higher Education and Training, NSFAS, and institutions from both the TVET and university sectors. “I’ve been calling for a stakeholder engagement meeting for months now,” he said. “Let’s have a conversation around stabilizing student accommodation. And to date, that conversation has not yet happened.”
The private sector, which stepped in to address the national student accommodation shortfall, now expresses diminished confidence. King noted that SAPSA represents over 1,000 accommodation providers, with new members joining regularly. “Investors are out there saying we can respond to the shortfall,” he said. “But at this stage, it would be reckless to pump millions if not billions into a sector that currently cannot assure sustainability.”
King, who has worked in the student accommodation sector for over 15 years, urged NSFAS and relevant authorities to incorporate experienced professionals into the development of a stable accommodation framework. “Currently, it’s never going to work when every two to three months management is changing, administration is changing, and you’re trying to then create stability,” he said.
With student examinations approaching, King warned that the risk of mass evictions remains a tangible threat. “Imagine the catastrophe if today members decided that well, we’ve tried, we’ve waited, we’ve been patient for two to three years, still no outstanding payments, still no payments for this year,” he said. “The eviction of student accommodation is what we are trying to prevent.”
King also questioned the efficacy of ongoing NSFAS inspections of accommodation facilities while providers remain unpaid. “Imagine being inspected when you’ve got 90-plus days not receiving rental. What are you inspecting? And what is your intention when I cannot pay for security services? I cannot pay for cleaning to meet the expectations,” he asked.
Looking ahead, King stressed that the core mandate of NSFAS must remain student protection. “The moment you are disrupted as a student with accommodation, it’s going to affect your studies,” he said. He extended an open invitation for the Higher Education Minister and Professor Hlengani Mathebula, the newly appointed NSFAS administrator, to engage in direct dialogue to address the crisis.
“Without a proper structure to protect us, things are going to get bad,” King concluded. “We want to provide fit-for-purpose, location-considerate, safe, and affordable student accommodation, but to do that we need the Department of Higher Education and Training to come on board.”
