Johannesburg – The National Student Financial Aid Scheme (NSFAS) has revealed that accommodation providers are not allowed to demand a deposit of top-up payments from students renting their properties.
In a statement released on Thursday, (6 February 2025), NSFAS said accommodation providers (landlords) are not allowed to demand a deposit or top-up payment from students that it funds.
“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 statement said.
NSFAS reminded accommodation providers of the compulsory conditions as provided by the Standardised Fixed-Term Lease Agreement.
The lease agreement is between the private accommodation providers and NSFAS-funded students, which reads thus: “The rent will be paid monthly to the accommodation provider (lessor) by NSFAS on behalf of the lessee (NSFAS-funded student), in accordance with the NSFAS Terms and Conditions for Private Accommodation Providers’ Participation on the Student Accommodation Portal.
“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 Lessor shall have no recourse against the Lessee for any default in the payment of rent by NSFAS.”
Furthermore, the NSFAS Terms and Conditions for Private accommodation providers’ participation on the Student Accommodation Portal states that: “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”.
The statement explained that 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.
“Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student must immediately vacate the leased property and will be liable for payment of all rent due to the Accommodation Provider.
“Where the student moves accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider and any such rental payments will be for the student own account.
“Any dispute arising between the parties regarding the interpretation or implementation of this agreement must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.”
