Student Representative Councils (SRCs) from ten South African universities have united in calling for the immediate removal of the National Student Financial Aid Scheme (NSFAS) accommodation cap, arguing that it has contributed to a worsening student housing crisis affecting poor and working-class students.
The call follows a joint statement initially issued by the SRCs of the University of Cape Town (UCT), the University of the Witwatersrand (Wits), the University of Johannesburg (UJ) and Stellenbosch University. The statement has since been endorsed by the SRCs of the University of Fort Hare (UFH), Tshwane University of Technology (TUT), Walter Sisulu University (WSU), the University of Venda (UNIVEN), Sol Plaatje University (SPU) and Nelson Mandela University (NMU).
According to the joint statement issued by the SRCs on 21 July 2026, the accommodation crisis is no longer confined to individual institutions but has become a national higher education challenge requiring urgent intervention.
“We refuse to accept a system that structurally excludes the poor and the working-class students,” the SRCs said in their statement.
The student leaders argue that the continued implementation of the NSFAS accommodation cap, together with what they describe as inadequate regulation of accommodation pricing, has left many students facing accommodation debt, threats of eviction, registration barriers and delayed academic progression.
The SRCs have called for:
- the immediate and complete removal of the NSFAS accommodation cap;
- urgent intervention by the Department of Higher Education and Training (DHET) and the Competition Commission to regulate student accommodation prices across the public and private sectors; and
- the immediate announcement of the 2026 NSFAS accommodation rates.
The accommodation cap was introduced by NSFAS in 2023 as part of measures aimed at managing accommodation costs and addressing concerns over escalating prices charged by some student accommodation providers. Under the current policy, funding for accommodation is subject to prescribed annual limits, including R52,000 for noncatered urban accommodation, with different limits applying to catered residences and accommodation outside metropolitan areas.
Student leaders maintain that these funding limits no longer reflect the actual cost of universityowned and accredited private accommodation.
According to figures cited by the UCT SRC, 3,465 students at the university have accumulated accommodation-related debt linked to the funding cap, amounting to approximately R139.5 million during 2025 and R537.4 million since the policy was introduced in 2023.
However, Parliament has defended the existence of the accommodation cap.
Portfolio Committee on Higher Education Chairperson Tebogo Letsie has argued that the cap remains an important mechanism to prevent excessive pricing by accommodation providers. He has said that the underlying problem lies in accommodation pricing rather than the cap itself and has urged universities and private providers to be held accountable for escalating costs.
Letsie has also announced that the Portfolio Committee intends engaging with Universities South Africa (USAf), student organisations, the Competition Commission and representatives from the student accommodation sector to investigate pricing practices. Parliament is also expected to convene a national colloquium on student accommodation next month to discuss possible solutions.
The growing number of SRCs supporting the campaign reflects increasing concern among student leaders that affordable accommodation remains one of the biggest barriers to accessing higher education.
At the time of publication, Soshanguve Pulse had submitted media inquiries to the National Student Financial Aid Scheme (NSFAS), the Department of Higher Education and Training (DHET), the Competition Commission, Universities South Africa (USAf), the Tshwane University of Technology SRC and the University of Johannesburg SRC requesting comment on the issues raised in the joint statement. Their responses will be incorporated once received.
As discussions continue between student leaders, government and higher education stakeholders, thousands of NSFAS-funded students remain uncertain about accommodation funding and await the announcement of the 2026 NSFAS accommodation rates.
