The University of Pretoria is disappointed in NSFAS’ rejection of the exemption application made by the University. This means NSFAS will continue to implement the R45 000 cap on accommodation funding and in the process, shift the financial burden onto students and the University, which are already experiencing financial strain.

When the University sent a letter to NSFAS in January 2023, requesting it to urgently reconsider the cap on accommodation allowance, we did it in good faith and in support of students as the actual cost of both UP-owned and accredited accommodation exceeds the capped amount of R45 000. The difference between the actual amount and the capped amount will lead to outstanding amounts on student accounts, which may not be recovered. Accredited accommodation providers could also refuse to place NSFAS students, as the amount is below their actual rates.

The University of Pretoria is not in a financial position to fund the difference between the actual and capped amounts. The extent of the funding required to fund the difference for the approximately 12 000 NSFAS students at UP will be approximately R240 million. This will have multiple negative consequences, including the strong possibility of making it unaffordable for students to continue with their studies.

For 2023, the Minister of Higher Education proposed a lower than inflation increase (5.1%) in tuition fees. The consumer price index (CPI) was 7.2% as at the end of December 2022. The less than inflationary increase exacerbates the financial burden placed on the University, thereby reducing its ability to fund the difference between the actual and capped accommodation rates.

Loadshedding has placed increased pressure on the University’s operational budget. Year-on-year utility fees have increased by more than the inflation rate. The cost of diesel to run the generators on our campuses and residences is approximately R1.5 million a day on stage 3 loadshedding and R2 million a day on stage 4. Cumulatively, these challenges may result in delayed or even no refurbishments of university-owned residences, owing to the lack of affordability.

The University is committed to helping students and will continue to work with the student leadership to find sustainable solutions. To this end, we’re using multiple institutional communication channels where the SRC and any registered student who is struggling to find accommodation, can lodge a request for assistance.

We have made a list of accommodation providers available that falls within the NSFAS cap and have agreed to continue its engagements with the suppliers of private accommodation to negotiate more favourable rates for NSFAS students.

The University will, as a matter of urgency, work with the SRC to find alternative accommodation and accredit more affordable accommodation. Where this accommodation is not located close to our campuses, we will be looking at possibly making safe transport available to support students.

NSFAS students who currently reside in UP residences will be allowed to continue their stay while the University, together with the students, explores workable and sustainable solutions to address the shortfall between the NSFAS allowance and cost of the accommodation.

We will continue to monitor the situation closely and deal with the issues within our available resources while at the same time doing everything we can to ensure the no deserving student is left behind.