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NSFAS Accommodation Cancellations Spark Concerns in Higher Education Committee

The recent actions of the National Student Financial Aid Scheme (NSFAS) have raised significant concerns among the Portfolio Committee on Higher Education. In particular, the committee has expressed strong reservations regarding NSFAS’s decision to cancel student accommodation agreements with unaccredited providers during the academic term. This move has created major challenges for students who find themselves stranded mid-terms, unable to complete their studies or burdened with additional financial pressures.
During a briefing with the newly appointed NSFAS board, Committee Chairperson Tebogo Letsie reaffirmed the committee’s support for ensuring that student accommodation is accredited. However, he stressed that the timing of some decisions made by NSFAS has exacerbated the issues facing students.
“We fully support the cancellation of unaccredited accommodation, and as the committee, we concur on that point,” said Letsie. “However, when cancellations happen during the academic term or trimester, it creates serious challenges. Students are left stranded, unable to graduate, and burdened with debt for decisions they had no control over.”
The committee also reflected on the consequences of mid-year defunding, which occurred in the 2024 financial year, when NSFAS withdrew financial support for students partway through the academic year. This decision disrupted the stability of institutions and left students vulnerable. The timing of such critical decisions, committee members argued, undermines institutional planning and poses a significant risk to students’ academic progress.
Moreover, the committee raised concerns about NSFAS’s operational shortcomings, particularly the communication breakdowns that have led to delays and miscommunication between the agency, universities, and students. These delays, the committee noted, have unfairly prejudiced students, adding to their financial strain and creating unnecessary stress during crucial academic periods.
To address these issues, the committee emphasized the urgent need for improvements in communication and decision-making processes within NSFAS. It is clear that students are facing mounting challenges, and without a more cohesive approach between the funding body, universities, and students, these problems are unlikely to be resolved anytime soon.
The committee’s remarks underscore the importance of timely, transparent decisions when it comes to financial aid and student accommodation, as delays and mismanagement can have serious, long-lasting impacts on students’ academic outcomes and their financial stability.
{Source: IOL}
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