NSFAS Sets Rules: Landlords Banned from Asking Students for Deposits or Extra Payments
Johannesburg – The National Student Financial Aid Scheme (NSFAS) has announced that accommodation providers are prohibited from requiring any deposit or top-up payments from students leasing their properties.
In a statement issued on Thursday, (6 February 2025), NSFAS clarified that landlords cannot ask for a deposit or any top-up payments from students who receive funding from the scheme.
“NSFAS has received reports that some accommodation providers are requiring NSFAS-funded students to make a deposit or top-up payment to access approved private accommodation,” the statement indicated.
NSFAS reiterated the mandatory conditions outlined in the Standardised Fixed-Term Lease Agreement.
This lease agreement exists between private accommodation providers and NSFAS-funded students and states: “The rent will be paid monthly to the accommodation provider (lessor) by NSFAS on behalf of the lessee (NSFAS-funded student), in line with the NSFAS Terms and Conditions for Private Accommodation Providers’ Participation on the Student Accommodation Portal.”
“The Lessor may not require or allow the Lessee to make any deposits, top-up payments, or other forms of payment to the Lessor or any other entity related to this agreement, including rent while awaiting payment from NSFAS.”
“The Lessor shall not have any recourse against the Lessee for any rent payment defaults by NSFAS.”
Additionally, the NSFAS Terms and Conditions for Private accommodation providers’ participation on the Student Accommodation Portal specify: “If an NSFAS-funded student is defunded due to an erroneous decision by NSFAS, the student will not be responsible for any overdue rent to the accommodation provider up to the defunding date.”
The statement clarified that if an NSFAS-funded student continues to occupy the leased property after being defunded, they will be liable for rent payments to the Lessor from the date of defunding.
“Should the student be defunded due to misrepresentation by the lessee/guardian at any point, the student must vacate the leased property immediately and will be responsible for all rent owed to the accommodation provider.”
“If the student moves to a different accommodation provider without prior NSFAS approval, NSFAS may choose not to cover any rental payments to the new provider, leaving such payments as the student’s own responsibility.”
“Any disputes between the parties concerning the interpretation or execution of this agreement must be resolved according to any dispute resolution procedures established by NSFAS for this purpose.”