Lodging owners can't force NSFAS-funded students to top-up payment

The National Student Financial Aid Scheme (NSFAS) said on Thursday that private accommodation providers are not allowed to force students funded by them to pay a deposit or top-up payments. 

The scheme said that even if they defund a student, they will still pay the debt until the date the student was defunded. 

“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,” said spokesperson Ishmael Mnisi. 

The Private Student Housing Association came out recently to say that they're owed R44m by NSFAS  for student accommodation for last year.

The association’s CEO, Kagiso Mamabolo, said they sent a letter to the higher education department to intervene.

“We have waited for NSFAS's empty promises. We have engaged with the administrator over the phone. He made promises. None of our members have been paid, which means that in the coming few days or over the weekend, students are going to be affected.

"We wrote a letter to the minister and also to the department. We can no longer have this conversation with NSFAS as they keep sending us from pillar to post," Mamabolo said in an interview with the SABC.

According to Mnisi, they have received complaints that there are landlords demanding deposits or top-up payments from students in order to access the approved accommodation. 

“The rent will be paid monthly to the landlord by NSFAS on behalf of the funded student by the NSFAS terms and conditions. The lessor shall have no recourse against the lessee for any default in the payment of rent by NSFAS,” he said. 

Mnisi said NSFAS will not pay for a student after their defunded period if the student continues living at the accommodation. 

“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 landlord,” he said. 

Mnisi said in a situation where a student moves to another accommodation without informing the scheme or without approval, it will decide whether or not to pay.

"NSFAS may elect not to pay any rental to the new accommodation provider and any such rental payments will be for the student own's account,” said Mnisi.

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