CUT Update on Payment of Accommodation Allowances for affected NSFAS-Funded Students in Non-Accredited Accommodations

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CUT Update on Payment of Accommodation Allowances for affected NSFAS-Funded Students in Non-Accredited Accommodations

Deputy Minister Mr Yusuf Cassim and the Vice-Chancellor and Principal, Prof. Pamela Dube, discussing NSFAS non-accredited accommodation challenges.

The Deputy Minister of Higher Education and Training, Mr Yusuf Cassim, visited the Central University of Technology, Free State (CUT), Welkom Campus, on 11 August 2026. During the oversight visit, the Deputy Minister engaged with the University’s Executive Management, the Presidents of both Student Representative Councils, and the broader CUT community regarding the ongoing challenges relating to the delays in payments for NSFAS beneficiaries residing in non-accredited accommodation.

Since 2022, CUT has worked closely with the National Student Financial Aid Scheme (NSFAS), which granted CUT a deviation, allowing NSFAS-funded beneficiaries to reside in non-accredited accommodation due to a shortage of beds.

In 2026, the university continued with similar engagement with NSFAS, and there was a further formal request for a deviation to allow Welkom Campus affected students to remain in non-accredited accommodation. The deviation was granted following the NSFAS Administrator’s visit to Welkom Campus on 15 July 2026, after which the university commenced a comprehensive verification process according to its internal processes and procedures based on the previous NSFAS deviation approvals.

To date, 260 of the 1363 affected students have had payments processed to service providers, covering the period up to June/July 2026. The reduction from the original 1,392 students reflects the exclusion of 29 students affected by the NSFAS funding gap review process.

However, during the oversight visit, the Deputy Minister pointed out that, going forward, the accommodation allowances should be paid directly to the affected students rather than to the service providers, as the contractual relationship for NSFAS accommodation support is between NSFAS and the student. This position is also confirmed in the NSFAS deviation approval letter issued to the university, which provides for this arrangement for the 2026 academic year only. The deviation does not extend to 2027, when NSFAS-funded students will be required to reside in accredited accommodation.

Accordingly, the university has committed to the following:

  1. Payments to the affected students will be processed accordingly by Friday, 14 August 2026.
  2. The 260 students whose accommodation service providers were already paid up to the end of June/July 2026 will receive their accommodation allowances directly from the University from July/August 2026 onwards.
  3. Going forward, all affected students will receive their approved accommodation allowances directly every month until the end of the 2026 academic year.
  4. The university will engage with the providers of the non-accredited accommodation about the latest developments and that students will now be paying them directly.

CUT wishes to emphasise that affected students are responsible for paying their monthly accommodation rentals and should ensure that payments are made promptly to maintain a good landlord–tenant relationship. The university appreciates the visit and engagements with the Deputy Minister and the NSFAS administrator. 

Student representatives took part in an engagement session held during the Deputy Minister’s visit to CUT’s Welkom Campus.

Uploaded: 12 August 2026
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