Housing providers warned that they could be forced to evict students as NSFA continues to delay payment, except in several loans.
Thousands of students across the country can soon find themselves on the road as the National Student Financial Assistance Scheme (NSFAS) fails to pay the service providers.
It is according to Amos Madli, General Secretary of the National Association for Student Housing Transformation (NASAT).
MDLULI stated that NSFAS had promised to pay the outstanding funds last week, but partially paid some service providers for services provided from January to March and ignored R140 million for services provided last year.
NSFAS Payment delay
“Most of our members in nine provinces did not receive payment, while others received a part of the outstanding amount.
“Therefore, we are unable to guarantee or confirm that our member will be able to continue the rendering of services.
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“Some are already in debt due to payment delays. We are trying to secure a meeting with NSFAS because they did not respect our agreement and they explain nothing,” he said.
MDLULI stated that the services he offered included housing, transport and other essential items.
However, NSFAS stated that he was intensively evaluating his internal processes related to the payment of valid housing claims.
Evaluation on internal processes
“As a result of this review, NSFAS has made significant improvements to streamline the payment process.
The NSFAS said, “We are happy to declare that the payment date has increased from April 4 to March 31. This adjustment reflects our commitment to provide timely and efficient support to students that rely on NSFAS funding.”
Also read: Over half of the university students rely on NSFAS
This urged the housing providers to avoid eviction of students and to cooperate with the plan and present their claims.
The institution said that cooperation was important to ensure that under weak circumstances, the students chased their studies and maintained the status of being stable.
“NSFAS is committed to connecting with housing providers to apply long -term solutions to the challenges facing private student housing area,” said this.
Circular for landlords
But NSFAS spokesperson Ishmael Manxi stated that the payment was made and “We issued a circular to all the landlords who did not present their previous claims on time”.
MDLULI stated that they were angry because when NSFAS announced that the payment for the initial 4 April was taken forward on 31 March, it will make partial payments and will not make any payment to others.
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He said that NASAT met NSFAS on March 19 and was written by e-mail written submissions and the outstanding requests prepared for a clear communication line to be established by a contact person for effective atmosphere of 2024 payment results.
“No clear updates have been received from 2024 regarding the payment of arrears.
No clear update
“Communication and failure lack of failure to fulfill financial obligations severely affected the ability of landlords to continue serving their housing facilities, especially small businesses that form a large portion of this industry.
“Small businesses are the backbone of South Africa’s economy and have the ability to change various sectors by providing jobs, promoting entrepreneurship and running economic development.”