The National Student Financial Aid Scheme (NSFAS) says it has released private accommodation payments for university students, bringing relief to thousands of accommodation providers who have faced mounting financial pressure over delayed payments.
In a statement, NSFAS said the payments were released on May 7, with more than R1.1bn paid out during the current quarter to benefit more than 100,000 students.
The scheme said accommodation providers banking with FNB received payments immediately, while those using other banks could experience “minor processing delays” because of interbank timelines.
NSFAS said it had made “three major disbursements” to accommodation providers during the quarter as part of efforts to stabilise the payment system.
“To date, 95% of accommodation providers listed on our solution partner portals have had their banking details successfully verified and are now included in direct payments for 2026,” said the scheme.
It added that it was conducting “one-on-one engagements” with the remaining providers to ensure they are integrated into the direct payment system.
The scheme also announced plans to introduce a monthly disbursement schedule for accredited accommodation providers in a bid to improve predictability and transparency in payments.
NSFAS urged accommodation providers to ensure students’ funding status is confirmed and that signed lease agreements are submitted, saying that those remain requirements before payments can be processed.
The scheme said it was legally required to bring accommodation payment functions in-house from the beginning of 2026, a move it believes has helped address several ongoing challenges in the sector.
According to NSFAS, these included delays by institutions in confirming students, students being incorrectly classified as transport allowance recipients and uncertainty around accommodation accreditation.
The scheme acknowledged the financial strain many accommodation providers are under.
“NSFAS recognises the NSFAS-funded operational pressures faced by accommodation providers, including rising utility costs and municipal challenges.”
It said it remained committed to working with sector associations and solution partners to finalise 2026 rental rates and create “a predictable, transparent payment system”.
NSFAS also assured providers that payment disputes and challenges would continue to be handled on a case-by-case basis.
“We thank all accommodation providers for their ongoing partnership and assure all stakeholders that NSFAS is focused on long-term stability, effective administration and the well-being of NSFAS-funded students,” NSFAS said.
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