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The New NSFAS Policy

By Siphesihle Sibaya


Image source: ensus.statssa.gov.za


The National Student Financial Aid Scheme (NSFAS) has implemented a new policy that throws students in the deep end. NSFAS introduced a policy that put a R45000 cap on student accommodation fees. This policy has left thousands of university students with debt and no tangible solution. According to a statement released on 20 February 2023, this cap was put in place in an attempt to manage the untamed costs of student accommodation that keeps increasing. A few institutions, such as the University of Pretoria, released statements and made applications to reject the new policy to no avail. There have even been protests, and all efforts thus far have been unfortunately unsuccessful. The policy has left a financial burden on students, as many do not have the means to pay the debt that NSFAS left for them. Some university students have only recently found out about the implementation of this policy, such as students from UCKAR who were informed on 04 December 2023. While this policy aims to address the unregulated and unduly expensive costs of student accommodation, it puts students under challenging predicaments and threatens their access to education. 


This decision that NSFAS has made is an explicit exclusion of students and has many financial implications for them. Some of the students who are studying through this financial aid scheme are from disadvantaged backgrounds. Many others students lack the financial resources to cover university expenses due to high university fee costs. They already face a plethora of financial strains and challenges. “I applied for NSFAS knowing very well that I can't afford to have a debt to my name. And again, I can't afford to, pay tuition fees, accommodation fees, and like all of these extra fees that come with being a university student. So, it's just really stressful, it's worrisome, especially looking at how people are panicking, you know, there's just like a bunch of people who are cancelling their on-campus residence, they would rather move off-campus, it's chaotic right now,” says an final year NSFAS student at UCKAR. 


Putting a R45000 cap on student accommodation or housing puts thousands of these students in complicated situations and adds to their burden. Firstly, many students have found themselves owing thousands of rands in student fees to university institutions. As a result, some are not able to access their results and have had to agree to pay back the debt with money they already do not have. It might prevent them from even being able to register at their universities. This is also detrimental to students who might not be able to return to school because they still owe student fees as some live in student accommodations. Students also greatly affected by this policy have been those who live in on-campus student accommodations. Student residences are not affordable with many incurring costs over R70000. Many of these students who reside on-campus have found themselves stuck and having to pay the rest of the debt. Many off campus students have also been left with money to pay as well. Another issue resulting from this is that many of these students will struggle to find accommodation in the 2024 academic year. In fact, students are already struggling to access particular housing due to this decision to cap the accommodation allowance. This policy brings endless implications.


The budget that they have introduced is not a tiny figure that students can attempt to pay off. Students from low-income families have to find a way to account for thousands of rands, which is unfair. NSFAS has undeniably neglected students, primarily those from underprivileged backgrounds. The most recent report published by NSFAS in 2019 found that a large majority of the beneficiaries on this scheme were African (Black) students (93.9%), followed by Coloured students (4.7%), White students (0.6%) then Indian students (0.6%). This report also noted findings that in 2019, just a little under 21% of NSFAS beneficiaries (104 538) came from households receiving social grant support. This value could have also increased over the years due to factors such as the impact of COVID-19. Based on these statistics, to me, this is an exclusion of these students, more specifically black students from lower-income families, because of how it will it prevent many from being able to register or others from finding accommodation. This cap also fails to account for students who attend school in urban areas or big cities. The rental expenses in these areas need high allowances to find a decent place conducive to students' learning. Big cities typically have high living expenses. This cap is harmful to a students' experience. It will influence the way in which students learn.


It is in the best interest of the students for NSFAS, university institutions and any other stakeholders to find a more feasible solution. The policy that has been introduced only puts students in compromising situations. There needs to be a better solution or an approach to regulating accommodation costs. It has to not hinder students and their opportunity to return to school. Or, it has to be one that does not put them in  student debt that they cannot repay. This current approach that NSFAS has taken does not in any way create an inclusive environment in university spaces. Instead, it makes it look like a deliberate exclusion of low-income earning students. It is detrimental to the future of university students for NSFAS and other stakeholders to revise this policy and find an approach that considers students' financial circumstances.

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