Manamela warns of unsustainable NSFAS accommodation costs

Higher Education Minister, Buti Manamela, says the funding crisis at the National Student Financial Aid Scheme (NSFAS) has taken a worrying turn, with student accommodation now costing more than tuition fees for funded students.

He has warned that the trend is becoming financially unsustainable and could force government to make difficult decisions about who qualifies for accommodation support.

Speaking in the National Council of Provinces on Thursday, Manamela revealed that the country would need between R60 billion and R70 billion to eliminate the shortage of student accommodation across universities and TVET colleges.

“Student accommodation now far surpasses tuition. The NSFAS administrator has to prioritise paying accommodation providers ahead of paying tuition to institutions, which is quite a worrying trend,” he said.

Manamela said the expectation that every student should be accommodated on campus is unrealistic, adding that government may need to redirect more resources towards tuition and learning facilities.

His warning comes as NSFAS faces a projected R15 billion funding shortfall, raising concerns that some qualifying students could lose financial support.

On Wednesday, Manamela told the Portfolio Committee on Higher Education that demand for funding had increased, while NSFAS has recorded university funding shortfalls since 2020.

He acknowledged that government may have to tighten accommodation criteria, noting that students living within 10 kilometres of campuses are now being accommodated, compared with previous rules that prioritised those living much further away, up to 60 kilometres.

“If nothing drastic is done, this funding shortfall will continue growing. We may have to make hard choices because we simply cannot accommodate every student,” he said.

Meanwhile, Forum for South Africa (FOSA) said the funding crisis threatens access to higher education for thousands of students from poor and working-class families who depend on NSFAS.

“Education is a constitutional right and should never become a privilege reserved for those who can afford it,” said FOSA leader, Tebogo Mashilompane.

The organisation has called for urgent intervention to protect qualifying students, greater transparency around the R15 billion shortfall, stronger financial oversight at NSFAS and a long-term funding model that guarantees equal access to higher education.

NSFAS has been under administration since March over governance and compliance concerns, with the latest funding warnings expected to intensify pressure on government to find a sustainable solution.

Minister @ButiManamela says that student accommodation has surpassed tuition as a cost for @myNSFAS and that should worry all of us! #ManamelaNCOP

— HigherEducationZA (@HigherEduGovZA) August 13, 2026

@ButiManamela encourages students to complain when their student accommodation does not meet the minimum norms and standards. He says students must go to every student representative body, NSFAS, the university or TVET college. #ManamelaNCOP

— HigherEducationZA (@HigherEduGovZA) August 13, 2026