Joburg accommodation providers say unpaid NSFAS bills totalling millions are pushing them to the brink

Who, what and when

Higher Education Minister Buti Manamela announced the dissolution of the NSFAS board and the appointment of an administrator, citing repeated attempts to stabilise the entity that had fallen short.

Providers say official assurances don’t match reality

NSFAS had told Daily Maverick in written responses that it had implemented an intervention to verify and resolve unpaid accommodation claims, that invoices had been received and verified, and that mop-up payments for 2024 and 2025 had been processed. The scheme also said at least 95% of accommodation providers had had their banking details verified and were included in its direct payment system for 2026.

Providers across Gauteng told a different story. Duan Coetzee, director of Urban Ocean Property Developers, said the administration announcement deepened uncertainty for providers already under severe strain. He said NSFAS owed his company R4.5-million dating back to 2024 for three Johannesburg CBD buildings housing up to 400 NSFAS-funded students.

“I was shocked to hear this news today. We do not know what this means for us yet. What do we do – put 400 kids out on the streets?”

Coetzee said providers had repeatedly been told delays were caused by student verification or banking issues, but that he had bank confirmation letters and an account that had previously received NSFAS payments. He said he had instructed lawyers to begin legal action as continued nonpayment could place students at risk.

Smaller providers feel the pressure

Smaller operators reported similar struggles. In Soweto, Kgotso Nkobe converted a family home into student accommodation and said numbers had fallen from 12 students to just four as unpaid costs mounted; he estimated NSFAS owed him about R60,000.

Masombuka Student Residence reported more than R100,000 allegedly outstanding by December 2024 and said a university finance office had told them funds had been returned to NSFAS, creating further confusion about where payments were stalling.

NSFAS has told providers that those who accommodate students without confirmed funding or signed lease agreements “do so at their own risk”, and that payments depend on institutions submitting accurate data and students being properly registered on its accommodation system. Providers interviewed said they had complied with requirements, undergone verification and attended engagements, but payments had still not materialised.

Operational impact and urgency

Providers described operating on tight margins with upfront costs for utilities, security, maintenance and staff. Without timely NSFAS disbursements, many say they are effectively subsidising the state. Several warned they might be forced to withdraw accommodation and displace students mid-year if payments are not made soon.

The decision to place NSFAS under administration raises urgent questions about whether outstanding claims, many dating back to 2024, will be settled or further delayed by the institutional reset.

Broader governance concerns

The administration announcement follows warnings from the Organisation Undoing Tax Abuse (Outa) that at least seven NSFAS board members had resigned since July 2025, and that some resigned members may have continued appearing on official NSFAS documentation as recently as April. Outa said the loss of financially skilled board members, delays in key decisions and transparency concerns pointed to a broader institutional crisis at an entity responsible for more than R50-billion in public funds.

For accommodation providers on the ground in Johannesburg, that crisis is already unfolding in unpaid accounts, legal threats and the real possibility of students being asked to leave without alternative housing or clarity on payments.