NSFAS on OUTA student accommodation report

The National Student Financial Aid Scheme (NSFAS) has acknowledged and welcomed the recent student accommodation report released by the Organisation Undoing Tax Abuse (OUTA). NSFAS indicated that it will carefully review the report and consider its findings and recommendations in line with ongoing initiatives aimed at improving student accommodation management.

The OUTA report follows sustained engagement between NSFAS and OUTA, including the provision of substantial information through a Promotion of Access to Information Act (PAIA) request. NSFAS noted that such collaborative efforts enhance transparency and provide valuable insights that help strengthen its approach to student accommodation management.

NSFAS reaffirmed its commitment to continuous improvement and stated that relevant recommendations from the report will be integrated into its broader student accommodation strategy.

The NSFAS student accommodation project was launched in 2023. Upon its appointment, the current NSFAS Board identified significant challenges in the system and prioritised stabilising the function by clearing payment backlogs, introducing stricter controls and preventing mass evictions of students. By the end of 2025, these objectives had largely been achieved.

The Board subsequently commissioned a comprehensive legal and forensic review of the student accommodation function, including its mandate, regulatory framework and contractual agreements established by previous administrations. The findings, presented to the Board at the end of 2025, highlighted the need for NSFAS to build the necessary institutional capacity to assume full responsibility for student accommodation management through a phased approach.

Following the review's recommendations, NSFAS began implementing reforms and, at the start of 2026, announced a transition to direct payment of accommodation providers, moving away from reliance on solution partners. The phased implementation of this system will continue, with regular updates provided to stakeholders.

NSFAS also confirmed that the Special Investigating Unit (SIU) is conducting an investigation into student accommodation in terms of a Presidential Proclamation. The Scheme stated that it is fully cooperating with the SIU and will continue to support the investigation as required.

In addition, NSFAS has initiated a national audit of student accommodation accreditation, which will be conducted throughout 2026.

For the 2026 academic year, NSFAS introduced additional controls to strengthen the processes for registration, onboarding and placement of students in accredited accommodation, as well as to ensure accurate and timely disbursements to accommodation providers. The Scheme reported that student placement for 2026 has, by and large, been smooth and stable.

NSFAS further emphasised that any student, accommodation provider, service provider or staff member found to have defrauded NSFAS and, by extension, the state, will face appropriate consequence management.

The Scheme also reiterated its commitment to working collaboratively with stakeholders, including higher education institutions, housing associations, student bodies, civil society organisations and the Department of Higher Education and Training, to address both short-term and long-term structural challenges in the student accommodation sector.

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