NSFAS says reforms underway after OUTA report raises serious issues on student accommodation

University students waiting to be placed in accommodation in Bellville, Cape Town. The National Student Financial Aid Scheme says it has begun implementing reforms after a comprehensive legal and forensic review of the student accommodation system. NSFAS was commenting after an investigative report by theOrganisation Undoing Tax Abuse (OUTA).

It found thatstructural changes to the funding model have introduced multiple “middlemen” into a pipeline that was previously managed more directly by universities. Organisation Undoing Tax Abuse (OUTA). The report also found that accommodation that was not fit for student use had been accredited.

NSFAS has acknowledged the OUTA report and said it will carefully review the findings and recommendations. “NSFAS is fully committed to continuous improvement,” NSFAS said in a statement. “Relevant recommendations from OUTA’s report will be integrated into our broader strategy for student accommodation management.” NSFAS said that after a legal and forensic review of the student accommodation system, it has begun implementing reforms.

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The new actions include transitioning to direct payments to accommodation providers, moving away from reliance on solution partners. The phased implementation of this system will continue throughout 2026. The Scheme added that the Special Investigating Unit is investigating student accommodation under a Presidential Proclamation, with NSFAS fully cooperating with the inquiry. Additionally, NSFAS has initiated a national audit of student accommodation accreditation for 2026.

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