FSSAPF executive Siphe Zenani highlighted a growing crisis in the student housing sector after higher education minister Buti Manamela decided to place the student financial aid scheme under administration on Monday (4/5).

The goal is to address ongoing challenges that threaten the student housing sector. While Manamela appointed Prof. Hlengani Mathebula to fix governance and financial weaknesses at the scheme, accommodation providers expressed concern that the transition could lead to further payment disruptions.

“Many of our members have been in pain since February. We have been financing all of these student accommodation operations using debt. I am aware of many providers who are grappling with rising debts,” said Zenani.

These financial pressures are allegedly intensified by outstanding payments from the 2024 and 2025 academic years and a lack of rental increases to cover the rising costs of electricity, water, and security.

Without a stable payment plan and active engagement from the new administration, the sector faces a collapse, Zenani warned.

While the government vowed the move would fix governance and audit issues, property owners worried about more payment delays. Many providers are still owed money, and some have resorted to credit facilities to keep buildings running.

“Even though we are respectful of the intervention, it is very worrisome for us because we don’t really see any benefit from those experiences,” said Zenani.

The organisation asked Mathebula to prioritise consistent payments. They believe without regular engagement and financial stability, the student housing sector faces a crisis that could leave many students without a place to stay.

“I would say from the next semester there might be some serious instability as far as the sector is concerned,” said Zenani.

According to Manamela NSFAS also received a disclaimer audit outcome for the 2024/25 financial year and struggled with system failures and unresolved student appeals.

OFM News/Refilwe Bekane sm

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