NSFAS Accommodation Cap – From August 2025, the National Student Financial Aid Scheme (NSFAS) will increase the student accommodation cap to R61,500 per year – a major change aimed at easing the burden on students living in off-campus and university-provided housing. This bold step comes after years of student protests and concerns around housing shortages, rising costs, and poor living standards across South African universities and colleges. Accommodation remains one of the biggest challenges for financially disadvantaged students. With rental costs often exceeding the previous cap of R45,000 per year, many students have been forced into overcrowded, unsafe, or far-located residences. The R61,500 cap is expected to significantly improve access to dignified, closer, and better-managed housing options – but only if institutions and landlords comply with the new guidelines. The Department of Higher Education and NSFAS have also introduced new verification and accreditation rules to ensure housing providers deliver value for money and meet minimum quality standards. This change will directly affect students, universities, private landlords, and TVET colleges nationwide. In this article, we unpack everything you need to know about the updated NSFAS student accommodation cap, eligibility conditions, official rules, provider accreditation, and key contact details.
NSFAS Accommodation Cap Increased to R61,500 – Key Highlights
The increase will be implemented from August 1, 2025, across all NSFAS-funded universities and colleges.
- New cap: R61,500 annually per student
- Applies to both on-campus and off-campus accommodation
- Only accredited housing providers will be paid
- Payments will go directly from NSFAS to housing providers
- A new set of quality benchmarks has been introduced
- Students will no longer pay or receive rent directly
- Institutions must submit verified accommodation lists
Comparison of Previous and New NSFAS Accommodation Rates
To understand the scale of the increase, here is a comparison between the old cap and the revised cap effective August 2025:
| Description | Previous Cap (Until July 2025) | New Cap (From August 2025) |
|---|---|---|
| Annual accommodation limit | R45,000 | R61,500 |
| Monthly average allowance | R3,750 | R5,125 |
| Coverage for off-campus housing | Limited | Expanded with accreditation |
| Payment structure | Institution or student paid | Direct to landlord/institution |
| Inclusion of private housing providers | Optional | Mandatory Accreditation |
| Accommodation quality requirements | Basic | Enhanced under new rules |
| Role of universities | Limited enforcement | Full verification required |
New Accreditation Process for Student Housing Providers
To improve safety and quality, NSFAS has introduced mandatory accreditation for all private and university housing providers.
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Housing Providers Must Meet These Criteria
- Distance from campus must be within 10km or have free transport
- Rooms must have proper ventilation, lighting, security, and fire exits
- Clean water, sanitation, and access to internet are now mandatory
- Lease agreement must be in line with NSFAS policy
- Each room must accommodate no more than 2 students
- Minimum space of 8 sqm per student
- Emergency maintenance support must be available
Responsibilities of Institutions and TVET Colleges
Universities and TVETs must now play a bigger role in verifying and managing approved student accommodation.
Colleges and Universities Must:
- Conduct physical inspection of housing facilities
- Maintain an up-to-date list of accredited accommodation
- Ensure landlord compliance with minimum service levels
- Report violations or unapproved providers to NSFAS
- Facilitate student accommodation support centres
- Maintain a grievance redressal mechanism for student complaints
Benefits of the New NSFAS Housing Cap for Students
The new cap not only increases access to safe and decent housing but also brings systemic changes that benefit students in the long run.
Key Advantages Include:
- Higher quality rooms and improved infrastructure
- Protection from scams and overcharging by landlords
- Less travel burden due to proximity-based approvals
- No need to manage housing payments personally
- More accountability for institutions and landlords
- Standardised lease terms, reducing legal confusion
- Enhanced safety and facilities, including WiFi and backup power
Common Issues Students Faced Under Old Rules
For context, here’s a look at problems students experienced before this change:
| Common Issue | Impact on Students |
|---|---|
| Insufficient cap for urban housing | Students stayed far or overcrowded |
| Rent money paid late or mismanaged | Evictions or threats from landlords |
| Poor room conditions | Health and safety risks |
| No internet or electricity backup | Affected studies, especially during exams |
| Unverified housing providers | Fake rentals and scams |
| No grievance redress | Students had no place to raise complaints |
Important Dates and How to Apply for NSFAS Housing
Starting August 2025, all new and existing NSFAS applicants must follow updated guidelines for housing support.
From August 2025:
- Applications will open on NSFAS portal for housing selection
- Students must choose accommodation from verified list only
- Institutions will verify room allocation
- NSFAS will release housing payments per term directly to provider
Departmental Contact Information for Help
If students face housing-related challenges or confusion, they should immediately reach out to the following:
| Department/Agency | Contact Number | Email Address | Purpose |
|---|---|---|---|
| NSFAS Call Centre | 08000 67327 (toll-free) | [email protected] | General Queries & Application Help |
| DHET Student Support | 012 312 5911 | [email protected] | Accommodation Complaints & Guidelines |
| University Financial Aid | Varies by Institution | Check university portal | Housing list, approval, support |
| NSFAS Regional Office | Provincial Contacts | See www.nsfas.org.za | Regional housing queries |
| Fraud or Scam Reporting | 0800 701 701 | [email protected] | Report fake housing or scams |
FAQs
1. Will the new NSFAS housing cap cover all accommodation types?
Only accredited on-campus and off-campus housing will be covered under the R61,500 cap.
2. Can students choose their own private accommodation?
Yes, but only if it is on the verified list of accredited providers submitted by your institution.
3. Do students have to pay rent upfront and claim it back?
No. NSFAS will pay the housing provider directly once the accommodation is approved.
4. What happens if a student chooses a non-accredited housing option?
NSFAS will not release payment. The student will need to bear the full rent cost.
5. Will all universities follow this cap from August 2025?
Yes. All public universities and TVETs under NSFAS will enforce the new accommodation policy.
