Statement by Zandile Phiri, Acting Secretary General of the United Democratic Movement

The United Democratic Movement (UDM) calls on the Minister of Higher Education, to urgently intervene in the ongoing crisis at the National Student Financial Aid Scheme (NSFAS), which has once again failed to pay student accommodation service providers.

The Private Student Housing Association (PSHA) has warned that should NSFAS not settle its outstanding debt of R44 million from 2024 by the end of this month, thousands of students may be left without accommodation. This places the 2025 academic year at serious risk and adds unnecessary stress to students and their families.

It is unacceptable that landlords are being asked to house students at their own cost when NSFAS has failed to make payments. Accommodation providers are already struggling to cover essential expenses such as water, electricity, security and maintenance. The failure of NSFAS to meet its financial commitments threatens the stability of private student housing, potentially leaving students homeless.

NSFAS has long been plagued by corruption, financial mismanagement, and delayed payments. Despite multiple changes in leadership, the situation remains unchanged.

In January 2024, the UDM raised concerns with President Cyril Ramaphosa regarding the persistent delays in payments to student accommodation landlords—an issue caused by a deeply flawed system. Unfortunately, our warnings fell on deaf ears, and we never received a response.

It is unacceptable that students and landlords continue to bear the brunt of NSFAS’s inefficiencies. Urgent action is needed to ensure that funding reaches beneficiaries on time and that the system is overhauled to prevent further mismanagement.

Communication with NSFAS seemingly remains impossible and promises to address these issues have not been kept. The recent excuse that payments were made directly to students, who then failed to pay landlords, only highlights the scheme’s failure to implement a proper payment system.

The UDM requests immediate action from the Minister of Higher Education to:
1. Ensure that NSFAS settles all outstanding payments without delay.
2. Implement a transparent and accountable payment system.
3. Hold those responsible for NSFAS’s ongoing failures accountable.

The future of our students cannot continue to be compromised by poor leadership and financial mismanagement. The UDM urges the Minister of Higher Education to act now before this crisis spirals further out of control.