Uncertainty looms for student landlords as NSFAS 2026 rates remain unresolved
Student accommodation landlords and the Private Student Housing Association (PSHA) are raising the alarm over ongoing uncertainty around 2026 accommodation rates
Image: Oupa Mokoena
The Private Student Housing Association (PSHA) has raised concerns over ongoing uncertainty regarding 2026 accommodation rates and payment processes from the National Student Financial Aid Scheme (NSFAS).
As universities across the country kick off the new academic year and students return to residences, landlords are still unsure about rental rates, who will handle payments, and whether metro or non-metro allowances will apply.
PSHA also warned that some students in metropolitan areas are still receiving non-metro allowances, adding further financial strain.
PSHA CEO Kagisho Mamabolo said the ongoing uncertainty is putting landlords under financial pressure and making it difficult to finalise leases, allocate rooms, and plan operational costs.
“Landlords are once again being asked to house NSFAS-funded students without a confirmed rental rate, without lease certainty, and without clarity on who is responsible for administering payments. This uncertainty is not sustainable,” Mamabolo said.
Mamabolo also said that despite NSFAS saying it would pay landlords directly in 2026, the 5% levy on accommodation allowances is still being deducted through intermediary service providers.
“If NSFAS requires service providers to support its administrative processes, it must pay them directly. These costs cannot continue to be deducted from student accommodation allowances or imposed on landlords through opaque mechanisms,” he said.
He called on NSFAS to confirm 2026 rates, clarify metro and non-metro allowances, end the levy, and work with landlords on a multi-year rental framework.
However, NSFAS spokesperson Ishmael Mnisi stated that the rates are still under review and will be announced once national budget allocations are finalised.
“The 2026 private accommodation rates are currently under review. The process considers consumer price inflation, student academic progression, first-time enrolment figures, and national budget allocations. NSFAS will make a formal announcement once the relevant numbers are finalised,” Mnisi told IOL.
He added that for 2026, a transitional arrangement is in place: NSFAS will manage payments directly for institutions in its accommodation project, while other institutions will continue handling payments themselves. On metro and non-metro allowances, Mnisi said NSFAS was not aware of misapplications and invited PSHA to provide specific examples for investigation.
He also noted that no decisions on the 5% levy have been announced yet, adding that "any future changes will be communicated transparently to stakeholders".
“NSFAS has communicated its intention to assume responsibility for the payment process. However, there has been no announcement regarding any adjustments to existing rates or levies at this stage. Any future changes will be communicated promptly and transparently to all stakeholders,” he said.
mthobisi.nozulela@iol.co.za
IOL Business