NSFAS payment freeze leaves over 12,000 students at risk of eviction and debt

Payment paralysis at NSFAS leaves students without rent or meals

More than 12 000 tertiary students across South Africa are facing mounting debt and the threat of eviction after the National Student Financial Aid Scheme (NSFAS) failed to pay landlords and froze allowances, according to reporting by the Citizen.

Allowances frozen while administration takes over

The funding shortfalls have hit students who qualify for NSFAS allowances for accommodation and meals. The scheme’s payments have been frozen, leaving students without accommodation allowances and struggling to pay university fees, the Citizen reported.

The payment disruption follows governance turmoil at NSFAS. Higher Education and Training Minister Buti Manamela recently placed NSFAS under administration and appointed Prof Hlengani Mathebula as the interim administrator to stabilise the institution, the Citizen said.

Student union warns of hunger, psychological distress and disrupted studies

The umbrella body representing tertiary students, the South African Union of Students (SAUS), said the scheme’s actions have left learners in limbo.

“We have learned with great shock that students have been put under ‘gap investigation’ despite qualifying for Nsfas. This has resulted in the freezing of allowances affecting more than 12 000 students nationwide,”

“This has subjected students to severe hunger, uncertainty, psychological distress and possible eviction. It is completely unacceptable that students are expected to prepare for examinations under such conditions,”

SAUS criticised the administration process, saying accountability and communication lines have broken down since the interim administrators took control and calling for urgent intervention to resolve accommodation arrears and tuition shortfalls, the Citizen reported.

Academic progress and graduations at risk

The Citizen said some students also reported tuition shortfalls where universities have not had fee payments fully covered by NSFAS, which can prevent students from registering for exams or graduating until debts are settled. With tests and examinations approaching at several institutions, the freeze threatens academic progress, the Citizen added.

What’s at stake

• Housing security: Students face possible eviction from private accommodation when landlords are not paid.
• Food security: Frozen meal allowances have left students vulnerable to hunger.
• Academic impact: Tuition shortfalls and administrative uncertainty risk disrupting registrations, exams and graduations.

The facts in this article are drawn from reporting by the Citizen on the NSFAS payment freeze and its effects on students nationwide.