The private student accommodation sector in South Africa is on the brink of collapse, with providers owed close to R1 billion by the National Student Financial Aid Scheme (NSFAS), according to Julian King, Chairperson of Student Accommodation Providers South Africa (SAPSA).
Outstanding payments span multiple years, including 2024, 2025, and portions of 2026, King confirmed. Despite repeated attempts to engage the Higher Education Minister—including formal written correspondence—SAPSA has received no substantive response or payment timeline.
“The budget for student accommodation providers definitely seems like it is dispersed to NSFAS,” King stated. “I think internally, how the disbursements of payments then goes creates the challenge.” He questioned how an entity operating for more than three decades has been unable to resolve persistent rental payment issues.
The financial strain has intensified since NSFAS was placed under administration. While some view the administrative intervention as a step toward accountability, King emphasized it has not resolved the cash flow crisis facing private landlords. Providers report waiting 60 to 90 days for payments, leaving them unable to cover essential operational costs such as security, cleaning, and utilities.
“This is the reason why we’ve reached out to the minister,” King explained. “Our mandate as student accommodation providers is clear. We want to provide fit-for-purpose, location-considerate, safe and affordable student accommodation, but to do that we need the Department of Higher Education and Training to come on board.”
The ripple effects are already impacting students. King noted that his SAPSA office in Queensbury receives daily calls from both providers and students reporting deteriorating conditions. Some accommodation facilities have closed, while security contractors have withdrawn services, raising serious concerns about student safety and well-being.
SAPSA represents over 1,000 accommodation providers nationwide, with membership continuing to grow. King stressed that private investors remain willing to help address the national accommodation shortfall—but only within a stable, predictable framework. “At this stage, it would be reckless to pump millions if not billions into a sector that currently cannot assure sustainability,” he said.
King, who has worked in student accommodation for more than 15 years, called for the inclusion of experienced sector professionals in developing a long-term solution. “Currently, it’s never going to work when every two to three months management is changing, administration is changing, and you’re trying to then create stability,” he noted.
He has repeatedly requested a structured stakeholder engagement involving the Department of Higher Education and Training, NSFAS, and institutions from both the TVET and university sectors. “I’ve been calling for a stakeholder engagement meeting for months now,” King said. “To date, that conversation has not yet happened.”
With student examinations approaching, the risk of widespread evictions has become increasingly urgent. King warned that if providers reach their breaking point after years of unpaid invoices, the consequences could be catastrophic for learners. “The eviction of student accommodation is what we are trying to prevent,” he said.
King also raised concerns about ongoing NSFAS inspections of accommodation facilities while providers remain unpaid. “Imagine being inspected when you’ve got 90-plus days not receiving rental,” he said. “What are you inspecting? And what is your intention when I cannot pay for security services? I cannot pay for cleaning to meet the expectations.”
Professor Hlengani Mathebula, the newly appointed NSFAS administrator, has been identified as a key stakeholder in resolving the crisis. King extended an open invitation for both the Minister and Professor Mathebula to participate in a direct dialogue to address payment backlogs and establish a sustainable framework.
“The core function of NSFAS is to protect the student,” King reminded. “The moment you are disrupted as a student with accommodation, it’s going to affect your studies.”
King reiterated SAPSA’s commitment to collaboration but stressed that urgency is critical. “Without a proper structure to protect us, things are going to get bad,” he concluded. “We are the voice of SAPSA, but we also need an ear.”