The National Student Financial Aid Scheme (NSFAS) has reiterated its call for students to report accredited private residences that demand additional top-up fees or deposits—practices the scheme says are explicitly prohibited.

In a statement released in February 2025 , the financial aid scheme restated that students funded by it should not be required to pay any extra accommodation costs. According to the NSFAS terms and conditions for student accommodation:

“The Lessor may not require or permit the lessee to pay a deposit or any form of payment to the lessor or any other person in connection with this agreement.”

Despite this clear directive, some private landlords continue to impose unauthorized fees on students.

At Nelson Mandela University (NMU), several students reported being charged deposits and monthly top-up fees. One student said she paid a R5,000 deposit and continues to pay R750 in monthly top-ups. When she questioned the fees, citing NSFAS policy, residence management allegedly responded: “What NSFAS said on the statement does not apply to us,” adding that the university should inform them if such charges are not allowed. She added that she was also told that NSFAS funding doesn’t cover the full cost of her room.

Another student reported being informed of a top-up fee—initially R300, later increased to R500—due to the room including a private kitchen and bathroom within a sharing room. The student said that he also paid a R1,000 deposit before moving in the residence.

NMU Student Representative Council (SRC) President, Lathitha Mbuzwana, said some residences argue that top-up fees are part of their lease agreements with students and independent of NSFAS regulations. Some landlords, he added, claim to have separate agreements with NSFAS.

“We are dealing with it,” Mbuzwana said. “The SRC has set up a task team that is visiting all residences that are still forcing students to pay top-ups, which are no longer permitted under the new NSFAS policy.”

NSFAS spokesperson Ishmael Mnisi stressed that any accredited accommodation provider charging top-up fees would be held accountable, calling the practice fraudulent and unethical. Mnisi urged students to report such incidents to the NSFAS fraud prevention hotline at speakup@nsfas.org.za.

Some residence managers declined to comment, citing contractual restrictions that prevent them from speaking to the media.

This publication first appeared on the MadibazNews student outlet digital newspaper.

–MediaHouse150