The National Student Financial Aid Scheme (NSFAS) has issued a strong warning to accommodation providers against demanding deposits or top-up payments from students they fund. This practice directly violates the terms of NSFAS funding agreements.
NSFAS provides crucial financial support to deserving South African students through bursaries and loans. This support covers essential costs such as tuition and registration fees and allowances for food, transport, learning materials and accommodation.
NSFAS has been informed that there are some Accommodation Providers (Landlords) who require NSFAS funded students to pay a deposit or top-up payment in order to get access to the approved private accommodation.
NSFAS has received reports of accommodation providers unfairly demanding top-up payments and deposits from students. This is strictly prohibited by the Standardized Fixed-Term Lease Agreement, a key component of the NSFAS funding agreement.
"The Lessor may not require or permit the Lessee to pay a deposit, top-up payments, or any other forms of payment to the Lessor or any other person in connection with this agreement, including payment of rent while awaiting payment from NSFAS."
Landlords are explicitly prohibited from demanding any payments beyond the agreed-upon rental amount.
Where the NSFAS-funded student is defunded due to an incorrect decision by NSFAS: the student will not be liable for payment of any arrear rent to the Accommodation Provider up until the date of being defunded.
Students who require an accommodation allowance must inform NSFAS of their living arrangements. This ensures that the allowance is correctly processed and disbursed. The agreement protects students from facing repercussions if NSFAS experiences delays or defaults on rental payments.
Students who provide false information during the NSFAS application process, particularly regarding their living arrangements, will face immediate defunding. This applies to both students and their legal guardians or lessees.
Where the NSFAS-funded student chooses to continue occupying the leased premises notwithstanding being defunded by NSFAS, the student will be liable for payment of rent to the Lessor from the date of being defunded.
Students are required to obtain prior approval from NSFAS before changing their accommodation. Failure to do so may result in the rejection of rental payments, leaving the student responsible for covering the costs of their new accommodation.
Any disputes arising between students, accommodation providers, and NSFAS regarding the lease agreement or funding conditions will be addressed through a formal dispute resolution process established by NSFAS.
