Landlords demanding deposits or extra payments from NSFAS-funded students are in violation of the financial aid scheme’s rules, the organisation has warned in a statement.

The National Student Financial Aid Scheme (NSFAS) has issued a firm warning to private accommodation providers, urging them to stop demanding deposits or top-up payments from NSFAS-funded students.

The financial aid body has been alerted to cases where landlords require students to pay additional fees before granting them access to approved private accommodation.

In response, NSFAS reaffirmed its regulations, stating that such practices are strictly prohibited under the Standardized Fixed-Term Lease Agreement governing student housing.

“The rent will be paid monthly to the Accommodation Provider (Lessor) by NSFAS on behalf of the Lessee (NSFAS funded student),” the statement reads.

“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.”

This means that landlords cannot penalise students for delays in NSFAS payments, nor can they impose additional charges outside the agreed rental structure.

NSFAS also clarified responsibilities in cases where a student’s funding is withdrawn. If a student is defunded due to an incorrect NSFAS decision, they will not be liable for outstanding rent up to the date of defunding.

However, if a student continues to stay in the accommodation after defunding, they will have to cover rent from that point onward.

In cases where a student is defunded due to misrepresentation, they must immediately vacate the premises and pay all outstanding rent owed to the accommodation provider.

Furthermore, if a student relocates to a different accommodation provider without obtaining prior approval from NSFAS, the organisation will not be responsible for covering the rental costs associated with the new provider, leaving the student solely liable for these expenses.

NSFAS urged all accommodation providers to comply with these conditions, emphasising that any disputes over the interpretation of these rules must be addressed through NSFAS’s designated dispute resolution process.

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