The National Student Financial Aid Scheme (NSFAS) has issued a warning to accommodation providers against demanding additional payments, such as deposits or top-ups, from NSFAS-funded students. These practices are in breach of funding agreements, the scheme has stated.
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 assists eligible students with living expenses while studying at universities or TVET colleges.
Students requiring this allowance must inform NSFAS of their accommodation arrangements.
Unlawful Demands from Providers
NSFAS has received reports of accommodation providers demanding top-up payments and deposits from students.
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.
This directly contravenes the conditions outlined in the Standardised Fixed-Term Lease Agreement.
Lease Agreement Protects Students
The agreement explicitly prohibits landlords from demanding any additional payments from students, including deposits or rent payments while awaiting NSFAS disbursement. It also protects students from landlord recourse should NSFAS experience payment delays.
Defunding and Accommodation Changes
Students who misrepresent information during the NSFAS application process, particularly regarding living arrangements, face immediate defunding. This includes misrepresentation by lessees or guardians.
Students changing accommodation providers without prior NSFAS approval may have their rental payments rejected, making them personally responsible for the new accommodation costs.
However, if a student continues to occupy accommodation after being defunded, they become liable for the rent from the defunding date.
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 says any disputes arising from the interpretation or implementation of the agreement must be resolved through a procedure determined by NSFAS.
