The University of Cape Town (UCT) Student Representative Council (SRC) has appealed to the National Student Financial Aid Scheme (NSFAS) to intervene in the growing student debt crisis caused by the accommodation cap. The council warns that some students are unable to graduate or pursue postgraduate studies due to accommodation-related fee blocks, with many facing shortfalls of between R30 000 and R50 000.
The accommodation cap was introduced in 2023 to protect NSFAS from inflated accommodation costs charged by private landlords. However, the SRC argues that the cap is now having severe consequences for students studying in Cape Town, where rental costs have continued to rise and significantly exceed the metropolitan accommodation cap of R55 000.
Affecting UCT Students
According to the SRC, UCT was able to absorb accommodation shortfalls during the first year of the policy using its own funds. However, the university was unable to continue covering those costs in 2024 and 2025, leaving students to make up the difference themselves. The SRC says many students now face fee blocks preventing them from registering for the next academic year, graduating, or enrolling for postgraduate studies.
The student body argues that the problem is particularly severe in Cape Town, where rental costs have continued to rise. The local rental market makes the current cap unfeasible for many students, with NSFAS beneficiaries being the most affected. Students who qualify for NSFAS often come from households that cannot afford tertiary education and rely entirely on financial aid to complete their studies and improve their economic circumstances.
Impact on Final-Year Students
The impact is becoming increasingly visible among final-year students. The SRC warns that a UCT medical student starting their degree today will either leave the university owing over half a million rand or not be able to graduate because of the debt incurred due to the accommodation cap alone. The council has requested a meeting with NSFAS leadership to discuss the impact of the cap and find a solution to the growing student debt crisis.
Some of the key issues affecting students include:
- Accommodation shortfalls of between R30 000 and R50 000
- Fee blocks preventing registration, graduation, or postgraduate studies
- Inadequate NSFAS funding to cover rising rental costs
The SRC believes that the issue extends beyond NSFAS beneficiaries and affects the entire student body. The council is calling for urgent action to address the growing student debt crisis and ensure that students are able to complete their studies without incurring significant debt.
