NSFAS outlines reforms to student accommodation oversight

The National Student Financial Aid Scheme (NSFAS) says it is strengthening oversight of student accommodation following an independent review and internal reforms.

In a media statement issued on 10 March 2026, NSFAS welcomed findings from the Organisation Undoing Tax Abuse (OUTA) report on student housing and outlined measures to improve accreditation, payments and accountability in the sector.

What happened

NSFAS confirmed it has reviewed the OUTA student accommodation report and is considering its recommendations to improve accommodation management for funded students.

The organisation said it engaged with OUTA during the investigation process, including responding to information requests submitted under the Promotion of Access to Information Act (PAIA).

According to the statement, several reforms were already introduced after NSFAS launched its accommodation project in 2023. The project was designed to address challenges such as payment backlogs, student housing placement and risks of evictions.

By the end of 2025, NSFAS said it had stabilised accommodation payments, introduced stricter controls and reduced the risk of student evictions linked to delayed payments.

Key details from the NSFAS statement

NSFAS outlined several actions already taken or underway to improve accommodation oversight.

Key measures include:

• A comprehensive legal and forensic review of the student accommodation system
• New payment models shifting from solution partners to direct payments to accommodation providers
• Strengthened regulatory and accreditation processes for student housing
• A national audit of student accommodation accreditation scheduled throughout 2026
• Additional controls for registration, onboarding and student placement in accredited housing

The organisation said placement processes for the 2026 academic year have largely been “smooth and stable”.

In addition, the Special Investigating Unit (SIU) is currently investigating matters related to student accommodation. NSFAS stated it is cooperating with the investigation as required.

Why it matters

Student accommodation has been a recurring issue for NSFAS-funded students across South Africa, particularly where delayed payments to landlords have created eviction risks.

NSFAS said the reforms aim to ensure:

• Accurate and timely payments to accommodation providers
• Improved oversight of accredited housing
• Stronger accountability where fraud or irregularities occur

The scheme also said any student, provider, staff member or service partner found to have defrauded NSFAS would face consequence management.

What happens next

Several processes are expected to continue during 2026 as part of the reform programme.

These include:

• A national audit of accommodation accreditation across institutions
• Continued SIU investigations into accommodation-related matters
• Further implementation of direct payment systems to housing providers
• Ongoing collaboration with universities, housing associations and government

NSFAS said it will continue working with higher education institutions, student bodies, civil society organisations and the Department of Higher Education and Training to address structural challenges in the student accommodation sector.

Where to get help or official information

Students seeking information about accommodation funding or placement should consult:

• Their university or TVET college financial aid office
• The official NSFAS website
• Official NSFAS communication channels

Updates about accommodation policies and investigations are expected as the 2026 audit and reform processes continue.