Outa investigation flags serious problems in NSFAS student accommodation system

Civic group’s report exposes conflicts of interest in student accommodation

NSFAS bosses briefed MPs on updates related to resolving students’ appeals, funding decisions for the 2025 academic year, disbursement of funding and allowances, the close-out report, student accommodation and related matters.
Outa investigation exposes weaknesses in NSFAS student accommodation system. (Supplied)

A new report by the Organisation Undoing Tax Abuse (Outa) has raised serious concerns about how billions of rand meant for student housing are managed by the National Student Financial Aid Scheme (NSFAS).

The report follows a two-year investigation into corruption, weak oversight and problems in the student accommodation system that thousands of students rely on every year. Outa said changes to the system may have affected how public money flows through the student accommodation pipeline.

According to Outa, major changes were made to the student accommodation system in recent years.

In the past, universities mainly managed student accommodation placements themselves. But under a new system, a central online portal was created and outside companies were appointed to manage parts of the process.

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