UCT SRC Plans Legal Action Against NSFAS Over Accommodation Issues

The University of Cape Town's Student Representative Council (SRC) is gearing up for a legal battle against the National Student Financial Aid Scheme (NSFAS) regarding its accommodation cap, which students argue has kept them in financial distress. The SRC is contesting the current cap of R55,000, which many claim is outdated and inadequate for the rising costs of student housing.

On August 27, 2026, a large group of UCT students rallied outside NSFAS offices in Cape Town, demanding that the cap be raised to reflect current accommodation prices. SRC Secretary-General Takalani Makhwathana addressed the crowd, voicing frustration over the lack of communication from NSFAS leadership, specifically mentioning their CFO, Waseem Carrim. “We have sent emails, we’ve made phone calls, and still our cries went unanswered,” Makhwathana stated. He emphasized that the issue affects both NSFAS-funded and self-funded students alike, and announced the SRC's intentions to take legal action if their demands are not met.

During the demonstration, Deputy Minister of Higher Education Yusuf Cassim received the students' memorandum and committed to forwarding their concerns to Higher Education Minister Buti Manamela. Cassim acknowledged the students' right to protest against what they perceive as injustices and insisted that consultations with affected SRCs are crucial. He remarked, “A student funded by NSFAS should not incur debt because they are not offered accommodation that doesn’t produce debt.”

In response to the protests, Carrim accepted the memorandum and promised a response within a week. He defended the accommodation cap, stating it was implemented in 2023 to manage costs effectively for NSFAS. “No NS5 student must graduate with debt,” he insisted, clarifying that the cap’s introduction was a necessary measure to prevent financial strain on the organization.

The ongoing debate around NSFAS has also drawn criticism from members of the Portfolio Committee on Higher Education. Chairperson Tebogo Letsie expressed concern over the potential impact of scrapping the cap, warning that it could destabilize the funding system. Meanwhile, EFF member Sihle Lonzi supported the students' demands, asserting that funding should enable students to complete their education without financial burdens. He cautioned that failure to address these issues could lead to unrest similar to the 2015 fees must fall movement.

Source: www.dailymaverick.co.za