The National Student Financial Aid Scheme (NSFAS) instructed accommodation providers not to demand deposits or top-up payments from students they fund, as this violates the terms of their funding agreements.
NSFAS provides comprehensive bursaries and student loans to deserving students enrolled in approved courses at universities and TVET colleges. Funding covers tuition and registration fees, as well as several allowances for food, learning materials and accommodation.
The NSFAS accommodation allowance helps eligible students with the cost of living away from home while attending university or a TVET college.
Students who require accommodation allowances must inform NSFAS that they will be living in accommodation near their institution.
Accommodation Providers Demanding Money From Students
NSFAS has received reports of accommodation providers demanding top-up payments and deposits from students. The financial aid scheme warned that this violates the compulsory conditions provided by the Standardized Fixed-Term Lease Agreement.
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.
The standardised leased agreement prohibits landlords from demanding additional payments from students.
"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."
The NSFAS lease agreements also protect students from any recourse from landlords if NSFAS defaults on accommodation payments.
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.
NSFAS confirmed that students found to have misrepresented information during the NSFAS application period, particularly concerning their living arrangements, will be immediately defunded. This includes instances where lessees or guardians provide false information.
Students who change accommodation providers without prior approval from NSFAS could have their rental payments rejected. In such cases, the student will be solely responsible for covering the costs of their new accommodation.
However, if students choose to occupy the accommodation after being defunded, they will be liable for the cost.
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.
NSFAS said any dispute arising between the parties regarding the interpretation or implementation of this agreement must be dealt with by a dispute resolution procedure determined by NSFAS.
