NSFAS vs Accommodation Providers: Financial Scheme Defends Itself From Claims
- The National Student Financial Aid Scheme has defended itself against allegations of non-payment by accommodation providers
- Frustrated accommodation providers in Kroonstad have revealed their struggles with NSFAS
- The financial scheme spoke to Briefly News as providers accuse it of delaying payments at the detriment of their businesses
Tebogo Mokwena, Briefly News’ Deputy Head of Current Affairs, contributed coverage of international and local social issues, including health, corruption, education, unemployment, legislation, labour, service delivery protests, and immigration in South Africa, during his seven years at Daily Sun and Vutivi Business News.
Source: UGC
KROONSTAD, FREE STATE– Property owners in Kroonstad, Free State, who have transformed their homes into accommodation for students, are struggling to stay afloat. Speaking to Briefly News, one of them described how his business took a hard knock when the National Student Financial Aid Scheme (NSFAS) started delaying their payments. However, NSFAS has strongly refuted the allegations.
Kopano Monyetsane told Briefly News that he and other accommodation providers in Kroonstad have wrestled with NSFAS. He said that some owners, including himself, received payments from NSFAS on a handful of occasions. Monyetsane revealed that he received a payment in October last year and another early this year. However, these are not enough to manage the upkeep of the property and to maintain it.
Monyetsane shared that he applied for accreditation in 2024 after an NSFAS representative encouraged him. However, it has been downhill since then, as Monyetsane has a sour relationship with NSFAS. He accused the financial aid scheme of sporadic payments and communication problems. He alleged that NSFAS sent them contact details to reach out to with queries, but none were operational.
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Kopano Monyetsane's business affected
The impact this has had on his business set Monyetsane back. He said that municipal bills rack up due to non-payment, and it results in water and electricity cuts due to non-payment. He added that NSFAS owed him over R100,000, which he needed for the upkeep of the property, paying the bond for the houses, and paying for WiFi. Monyetsane told Briefly News that he survives by taking out loans, and other providers cross-subsidise with their salaries.
However, not everyone is as lucky. Monyetsane also denied allegations that Higher Education Minister Buti Manamela made about accommodation providers. Manamela said that students were housed in poorly maintained accommodation located near taverns and unsafe places. Monyetsane said that it was impossible to do maintenance when NSFAS delayed its payments.
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What did NSFAS say in response?
NSFAS responded to Briefly News. It said that in 2025, it undertook an initiative to get outstanding claims from accommodation providers. They found that institutions and providers are not confirming their students on time, are classifying their students as qualifying solely for transport allowances and not private accommodation, and students are not confirmed as residing in NSFAS-accredited accommodation.
NSFAS, which introduced a new payment system, said that universities were paid over R108 million for 2024 and 2025, while TVET colleges received over R26 million for the same period. NSFAS added that some accommodation providers were not paid because their bank accounts had not passed verification. The scheme also denied that it did not honour its payment obligations for accommodation providers to maintain their properties.
“NSFAS remunerates landlords for a period of 10 months, and providers are expected to uphold proper maintenance of their properties throughout. While payment delays may occur, they should not, under any circumstances, compromise the safety and well-being of students,” NSFAS said.
North West TVET SRC member arrested
In a related article, Briefly News reported that a member of the TVET college SRC in the North West was arrested for NSFAS-related fraud. The female member had access to students’ accounts and used this access to withdraw money.
The woman reportedly withdrew R14,000 from seven accounts. A case was opened against her, and she appeared in court in December 2025.
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Source: Briefly News
