TVET accommodation crisis: NSFAS disbursement errors lead to student evictions and financial chaos

15 Apr 2025

A ‘misunderstanding’ between NSFAS, institutions and students led to funds being disbursed to people unverified as eligible.

The failure by the National Student Financial Aid Scheme (NSFAS) to pay TVET college landlords directly has led to confusion and evictions after some students received R13,800 in allowances — despite not being eligible — while others refused to pay their landlords.

According to NSFAS, this was a misunderstanding after students on 4 April 2025 were paid R13,800, meant for allowances and accommodation. NSFAS spokesperson Ishmael Mnisi said the amount included R10,800 meant specifically for accommodation.

However, because of what he called a “misunderstanding” between NSFAS, institutions and students, the funds were disbursed to individuals who were not verified as eligible.

Last week, NSFAS requested updated lists of students applying for NSFAS-accredited accommodation from its “solution partners” — intermediaries responsible for linking NSFAS with institutions. These lists were meant to help colleges confirm students’ eligibility for accommodation and transport support.

But according to Mnisi’s statement, the confusion arose when NSFAS “paid students who were not on the list and were not confirmed by the institution in a timely manner as eligible for accommodation, which led to allowances being disbursed to these students”.

Read more: Multiple funding crises open door to scammers as students await loan approvals and accommodation

Why not pay TVET landlords directly?

Daily Maverick asked Mnisi why NSFAS was not paying TVET landlords directly. He said TVET colleges lacked the infrastructure and support mechanisms to facilitate timely and efficient payments to students.

“By channeling payments directly into students’ accounts, NSFAS ensures that allowances are delivered in a timely manner, thereby promoting financial stability for students.

“This approach helps to alleviate the administrative burden on TVET colleges as they enhance their capabilities, while simultaneously supporting students’ educational needs and wellbeing.”

Students evicted

Students from Waterberg TVET College in Lebowakgomo campus have been evicted by landlords after they did not pay for their accommodation.

Waterberg TVET College spokesperson Mahlako Phasha told Daily Maverick that “we can confirm that some students did receive payment from NSFAS. Students who were evicted refused to pay landlords. A few students submitted proof of payment as per the NSFAS circular to the College’s Student Support Services.”

TVET students’ accommodation is capped at R33,000 a year for approved accommodation. This cap applies to both catered and non-catered accommodation.

For private accommodation, the allowance is capped at R52,000 per year for TVET students in metro areas and R42,640 per year for non-metro areas.

Read more: Dig these digs — Australia, US varsities offer creative solutions to SA’s student housing crisis

NSFAS is now urging students who have received R10,800 designated for accommodation allowances to settle their outstanding payments with their landlords as soon as possible.

Mnisi told Daily Maverick that students were aware of their monthly allowances as that information had been communicated to them. DM

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South Africa

Why not pay TVET landlords directly?

Students evicted