NSFAS Overhauls Accommodation Support, Cuts Out Middleman for 2026 Students

• NSFAS introduced a new system to pay accommodation fees directly to service providers
• Students can track housing applications on NSFAS's upgraded accommodation database
• NSFAS previously faced backlash over previous financial mismanagement and irregular appointments of service providers

Tebogo Mokwena, Briefly News’ Deputy Head of Current Affairs, contributed coverage of international and local social issues, including health, corruption, education, unemployment, labour, service delivery protests, and immigration in South Africa, during his seven years at Daily Sun and Vutivi Business News.

TSHWANE, GAUTENG — The National Student Financial Aid Scheme (NSFAS) has introduced a new system which will see it pay accommodation money directly to service providers, effectively cutting the middleman.

NSFAS's acting board chairperson, Dr Mugwena Maluleke, said on 6 January 2026 at a press briefing in Tshwane that accommodation allowances will be paid directly to accredited service providers. He said that students struggled to be placed in accommodation in the past due to non-payment.

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NSFAS to pay accommodation straight to providers

Maluleke said that students will be able to apply for housing in the upgraded accommodation. Students will be able to track their applications for housing on the platform. He called on all higher institutions of education and private accommodation providers to adopt NSFAS's new framework.

Maluleke added that the academic calendar will be aligned with opening, closing, move-in, and move-out periods for accommodation to prevent students from being stranded during the academic year. Maluleke said that the changes will improve the lives of students.

A look at NSFAS's troubles

NSFAS's woes were compounded when the former Higher Education Minister, Dr Blade Nzimande, dissolved its board on 12 April 2024. His decision followed the resignation of the board's former chairperson, Ernest Khoza. Khoza and Nzimande were accused of siphoning millions from the NSFAS's coffers.

NSFAS also came under fire in May 2025 after it paid four service providers R200 million over 17 months and rented offices for R2 million. It appeared before the Portfolio Committee on Higher Education on 7 May and answered questions about alleged financial mismanagement. NSFAS's CEO, Waseem Carrim, said he would turn NSFAS around in six months. This was after Members of Parliament described NSFAS as a disappointing institution.

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NSFAS files papers to end fintech providers' contracts

In a related article, Briefly News reported that NSFAS filed papers in May 2024 to sever ties with the four fintech service providers that distributed funds to students receiving NSFAS aid. This was after recipients complained in the past about not receiving their allowances.

NSFAS filed papers against Coinvest, Noracco, Tenet, and Ezaga. A report revealed that the companies were irregularly appointed. NSFAS's administrator, Freeman Nomvalo, said the relationship between NSFAS and the four service providers was irregular and caused problems for students. South Africans blasted NSFAS despite the announcement.

"Irregularly appointed by whom? Will the responsible parties be held accountable, or is it business as usual?" one netizen asked.

Proofreading by Kelly Lippke, copy editor at Briefly.co.za.

Source: Briefly News