CAPE TOWN, Western Cape — The NSFAS accommodation cap is leaving thousands of university students battling mounting student housing debt, prompting urgent intervention from Parliament. During an all-day parliamentary colloquium, government officials, student leaders, and higher education stakeholders convened to address the escalating crisis surrounding the cost, availability, and regulation of student accommodation.
At the University of Cape Town (UCT), the affordability gap has become particularly acute. Student representatives recently marched to NSFAS offices and Parliament to submit a memorandum of demands, chief among them the complete removal of the accommodation cap. Students argue that the current limit traps them in a cycle of compounding debt that jeopardizes their academic futures.
“For the first year, you accumulate 40,000 rand in debt from the cap shortfall, the second year the same thing, and the third year another 40,000,” explained a student representative. “By the time you have to graduate, you owe 120,000 rand. It is incredibly difficult to graduate from a university like UCT when you are financially vulnerable and carrying that kind of debt.”
The financial pressure is not limited to NSFAS-funded students. An 18-year-old first-year BCom actuarial science student, who relies on a private bursary, noted that the funding does not cover full tuition, accommodation, and meals. Despite extending a three-year degree to four years to spread out the costs, the student still faces an outstanding bill of 80,000 rand.
“UCT attracts students from everywhere, including KwaZulu-Natal and Limpopo, and not all of us are privileged enough to cover these costs,” the student shared. With room rates reaching 90,000 rand and meal plans costing an additional 30,000 rand, some students are forced to reduce their daily meals just to make ends meet. The burden also extends to families, sparking constant, stressful discussions about how to manage the mounting 80,000 rand shortfall.
The issue has now formally reached Parliament, which is investigating the NSFAS cap, accreditation funding delays, and rising accommodation costs. Higher Education Minister Buti Manamela addressed the colloquium, defending the initial implementation of the cap as a necessary measure to prevent public funds from becoming an “open check” for private accommodation providers.
However, the Minister acknowledged that the system requires urgent reform to improve the overall student experience. “The first pillar that must be differentiated but also regulated is pricing,” Minister Manamela stated. “We need a pricing framework.”
He noted that the current benchmark of 52,000 rand, which has been publicly cited in the debate, is rooted in 2025 non-catered accommodation rates. Moving forward, the Minister emphasized that the formal 2026 rate position and methodology must be clearly stated and regulated to ensure fairness and sustainability for both students and providers.
The colloquium, which also included representatives from the Competition Commission, universities, and the private accommodation sector, marks a critical step toward finding a balanced solution to a crisis that threatens to derail the academic progress of South Africa’s most vulnerable students.
