Private student accommodation providers are facing financial ruin as delayed payments by the National Student Financial Aid Scheme (NSFAS) leave landlords unpaid for months, threatening services, staff salaries and, potentially, student housing itself.
Zoliswa Dlula, a private accommodation provider for Walter Sisulu University students in Komani, says she has not received payment from NSFAS since October 31 last year, and is now owed more than R350,000.
Dlula accommodates more than 30 students and manages three properties offering what she describes as grade A facilities, catering for 50, 84 and 36 students respectively. But despite the scale of her operations, she says her finances have run dry.
“I have more than 150 students that I have accommodated, but my bank account has been dry since November last year. How do I pay for water, electricity, Wi-Fi, DStv, cleaners and security when we have not been paid?” she asked.
Her situation worsened when the Chris Hani District Municipality installed a water meter at one of her properties housing 36 students.
“Because we have not been paid since November, I could not afford to load water. There has been no money coming into my account, which meant I couldn’t even apply for credit at the banks,” she said.
Dlula said she was forced to rely on her husband, who managed to buy water worth R2,000 to keep the residence running.
“We are accommodation providers in Komani for Walter Sisulu University, which does not even have one institutional residence. The campus is completely dependent on us as private providers, but how they treat us is grossly unfair,” she said.
The South African Student Accommodation Providers Association said Dlula’s case reflects a broader crisis affecting its members nationwide.
It warned that many providers have been forced to take on debt to sustain operations, often at high interest rates.
“University accommodation providers have not been paid, while TVET college providers are only partially paid. It is becoming a norm that year in and year out, NSFAS is unable to honour its commitments on time,” the association said.
It added that the ongoing delays are placing providers under severe financial strain and risk undermining student success.
At the moment, there is nothing we can do because we do not want to be removed from the system, yet we are still expected to provide full services as per NSFAS regulations.
— Zoliswa Dlula, a private accommodation provider
“Conducive student accommodation with functioning facilities plays a vital role in academic performance, yet providers are expected to operate under extreme financial pressure.”
NSFAS acknowledged delays in a February 26 update, saying the first accommodation disbursement for 2026 had been moved to March 13 due to lower-than-expected confirmed registrations and outstanding lease agreements.
On March 17, the scheme issued a circular apologising to accredited providers for outstanding payments.
Responding to Sunday Times queries, NSFAS said it had taken over direct payment of private accommodation providers in 2026, a process that required re-verification of banking details.
The scheme said it paid out R174.7m to 1,268 accommodation providers on March 13. However, it admitted that about 50% of providers were not paid due to verification failures.
“Many accommodation providers were using personal bank accounts while operating registered companies. NSFAS provided two opportunities to correct banking details, but could not delay payments further,” it said.
Affected providers have been given another chance to submit correct details ahead of a supplementary payment run scheduled for March 25.
Despite this, frustration is mounting. On Wednesday, some accommodation providers threatened to evict NSFAS-funded students over non-payment.
NSFAS warned that any provider who evicts students or suspends services without proper consultation would be in breach of their agreements and could face termination of their leases.
For Dlula, the warning adds to the pressure.
“This is disturbing because we are expected to keep students but cannot afford to provide even the basics. We have staff members who have not been paid, and they have families to care for,” she said.
“At the moment, there is nothing we can do because we do not want to be removed from the system, yet we are still expected to provide full services as per NSFAS regulations.”
NSFAS said TVET accommodation payments are scheduled for March 25, while university accommodation payments are expected on April 1.
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