NSFAS Warns Landlords Against Demanding Deposits or Extra Payments from Students

The National Student Financial Aid Scheme (NSFAS) has issued a stern warning to private accommodation providers, urging them to refrain from demanding deposits or additional payments from students receiving NSFAS funding.

In a recent statement, NSFAS confirmed that it had been alerted to multiple instances where landlords were asking students for extra fees before granting them access to approved private accommodation.

NSFAS has reiterated that such practices violate the rules set out under the Standardized Fixed-Term Lease Agreement, which governs student housing. According to NSFAS, the agreement specifies that landlords (also referred to as accommodation providers or Lessors) are prohibited from demanding deposits, top-up payments, or any other forms of payment in addition to the rent.

“The rent will be paid monthly by NSFAS on behalf of the NSFAS-funded student (Lessee),” the statement outlined. “The Lessor may not require or permit the Lessee to pay a deposit, top-up payments, or any other form of payment related to this agreement, including rent payments while awaiting payment from NSFAS.”

This means that landlords cannot impose additional fees, including penalties for delays in NSFAS payments, and must adhere to the agreed rental structure.

NSFAS also clarified the financial responsibilities when a student’s funding is withdrawn. If a student’s funding is rescinded due to an NSFAS error, they will not be held liable for any rent arrears up until the date of defunding. However, if the student stays in the accommodation after being defunded, they will be responsible for rent payments from that point onward.

In cases where a student’s funding is withdrawn due to misrepresentation, they must vacate the accommodation immediately and settle any outstanding rent owed to the accommodation provider.

Furthermore, NSFAS emphasized that students who move to a different accommodation provider without prior approval will be solely responsible for the rental costs associated with the new accommodation, as NSFAS will not cover these expenses.

NSFAS has urged all accommodation providers to adhere to these rules and emphasized that any disputes over the interpretation of these regulations should be resolved through NSFAS’s official dispute resolution process.

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