NSFAS Accommodation Allowance Cap Latest News

NSFAS news Today 8th March 2023

NSFAS Accommodation Allowance Cap Latest News

In todays latest NSFAS News – Some schools are opposed to NSFAS’s new limit on the housing stipend for students. The limit is applicable to both home and institutional stays.

The maximum housing allowance for students has been set at R45 000 per year since the inception of the National Student Financial Aid Scheme (NSFAS). It was put in place to control the spiraling cost of dorm rooms.

The introduction of the limit meant that students, parents, and NSFAS would not be exploited in any way. Private and university-run housing at some universities are currently priced at or above R45 000 per year, making it unaffordable for many students.

The International Finance Corporation (IFC), a subsidiary of the World Bank, conducted a study that NSFAS used to determine how much housing assistance recipients should receive. The cost of lodging was calculated with various accommodation types in mind.

A year’s worth of housing at UCT will set you back around R78 000, while at U Limpopo it will only set you back around R16 000. The median estimate is a yearly salary of R38 000.

NSFAS determined a maximum of R45,000 be allotted for student housing based on a median estimate. After NSFAS disseminated this information to relevant parties, it was determined that the proposed limit would be manageable for the vast majority of colleges.

Some schools, though, went over the limit. Among these are:

Sol Plaatjie University of Cape Town
University of Rhodesia
Wits University, Stellenbosch University, and the University of the Western Cape
The Pretoria University
NSFAS claims that some landlords are exploiting the system by charging up to R90,000 annually for housing. Some tenants were resistant to suggestions that they lower their rents.

So, NSFAS went to the Competition Commission to ask them to look into possible housing scams. To further guarantee that students in these regions have access to affordable housing, NSFAS has expedited the accreditation of providers there.

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