Student accommodation costs raise funding concerns
NSFAS faces a R15 bln shortfall as accommodation costs reach R17 bln annually.
Parliament's Portfolio Committee on Higher Education has expressed alarm over the escalating expenses of student accommodation, warning it is straining the student funding system. According to the committee, the National Student Financial Aid Scheme (NSFAS) is facing a R15 billion funding gap, with funding obligations surpassing the funds allocated by the National Treasury.
Outa CEO Wayne Duvenage stated that the Gauteng High Court's decision to halt NSFAS administrator Professor Hlengani Mathebula's appointment strengthens the organisation's long-standing worries about the scheme's governance and accountability.
The NSFAS scheme allocates around R17 billion per year for student accommodation, with some universities charging up to R11,000 per student. Tebogo Letsie, Chairperson of Parliament's Portfolio Committee on Higher Education, emphasized that these costs are unaffordable. He explained that NSFAS spends R17 billion on accommodations, which is excessively expensive.
In response, the committee held a meeting on August 28th to investigate the student accommodation issue. During this meeting, stakeholders such as investors, students, landlords, and real estate professionals were invited to provide insights into the reasons behind the high costs of student accommodations compared to residential options in the same areas.
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