FUNDING BATTLE: UCT SRC says it will take NSFAS to court over accommodation cap crisis

On Thursday, 27 August 2026, students from the University of Cape Town gathered in numbers to protest against the National Student Financial Aid Scheme’s (NSFAS) accommodation cap of R55 000, which, according to the students, locks them out of university and leaves them in debt. University of Cape Town students protest at the National Student Financial Aid Scheme offices, demanding the scrapping of an accommodation cap they say leaves them in debt. (Photo: Siyabonga Goni) Speaking in front of the NSFAS offices at the Foreshore in Cape Town, the Student Representative Council (SRC) said it would take the scheme to court over the “inadequate” accommodation cap. Addressing the students, UCT’s SRC Secretary-General Takalani Makhwathana said students had been suffering over the cap, and they had been trying to communicate with NSFAS CFO Waseem Carrim, but had not received a response. UCT SRC President Kitso Mojapela addresses students at the NSFAS offices. (Photo: Siyabonga Goni) “ We are glad to announce that even if they don’t follow on these demands, UCT and UCT SRC are taking us to court over this issue,” said Makhwathana. He added: “ We have sent emails, we’ve made phone calls, and still our cries went unanswered. It’s clear to us that NSFAS only listens with one weapon. This is an issue that affects NSFAS-funded students and self-funded students. The then acting CEO (Carrim) appeared before the Portfolio Committee of Higher Education. He downplayed the issue... he said that this issue is because the students, ‘they don’t know what they're getting themselves into’,” said Makhwathana. Accepting the memorandum at the scheme’s office, Deputy Minister Yusuf Cassim said he would ensure that the demands were taken to Higher Education Minister Buti Manamela and that students had the right to march against what they believed was unfair. Deputy minister of Higher Education and Training Yusuf Cassim and NSFAS CFO Waseem Carrim accept the students’ memorandum. (Photo: Siyabonga Goni) “I’ve asked the CFO to ensure that consultation must be non-negotiable; it must take place directly with the affected SRCs. You have a right to be angry... the main point here is that a student funded by NSFAS should not incur debt because they are not offered an accommodation that doesn’t produce debt. That one I agree with, but I want you to understand that I’m never going to lie to students. I’m not in charge of NSFAS; out of respect for you, I said I’m going to come and receive your memorandum, and I’m going to make sure that we forward it to the minister’s office,” said Cassim.Meanwhile, NSFAS CFO Carrim also accepted the memorandum and said the students should expect a response within a week. “We accept your memorandum. We will respond to you within one week of all of your demands here. Two, NSFAS introduced the accommodation cap in 2023; three years ago. We introduced the accommodation cap before I was here. But it was to control the amount of costs that we were being charged as NSFAS,” said Carrim.Defending himself, Carrim said: “I was not the CEO when I addressed Parliament. But I don’t want to be mischaracterised by anybody here. Go and listen to what I said in Parliament. I said in Parliament is that no NS5 student must graduate with debt. You can’t have a bursary, and you are graduating with debt that you have to pay,” said Carrim.UCT students with placards demanding that NSFAS loans not leave them in debt. (Photo: Siyabonga Goni) Daily Maverick recently reported that while public debate has largely centred on a “funding freeze”, data analysis exposes a far more destructive operational reality: NSFAS’ policy is allowing a massive utility deficit to gut metropolitan campus budgets while actively slashing cash funding for non-metro institutions.Portfolio Committee on Higher Education Chairperson Tebogo Letsie. (Photo: Phando Jikelo / RSA Parliament) Chairperson of the Portfolio Committee on Higher Education, Tebogo Letsie, told Daily Maverick: “We have made our views known about those who don’t want the cap – they will collapse the system – students believe they are correct by asking for the cap to be scrapped, but that’s simply saying we must give universities a blank cheque – this at the back of what the SIU just said about corruption from some university officials on student Accomodation,” said Letsie. Parliament is set to host a colloquium on student accommodation and the NSFAS cap. Accepting the memorandum at Parliament, EFF member of the Portfolio Committee on Higher Education, Sihle Lonzi, supported the students' calling for the scrapping of the NSFAS cap. "You are very correct. It is not your fault that NSFAS and residences can't find each other, because the logic is that if you are funded by NSFAS, you should be able to complete your degree without incurring any debt. Yes. That is what this government promised us when they declared that NSFAS is no longer a loan; NSFAS is a bursary," said Lonzi.He added that the memorandum would be submitted to the portfolio committee. "When we table this matter in Parliament and raise it, we are also going to warn them and say, "If you do not listen to the students of South Africa, you are going to experience another 2015 fees must fall in South Africa." Because you cannot allow students to continue to be victimised. They are not asking you to give them money for alcohol. They are not asking you to give them money to spend on free time. No. They are asking for an education,” said Lonzi. DM