Accommodation suppliers urged to stop demanding deposit from NSFAS funded college students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This comes following NSFAS gained experiences about some accommodation vendors who require NSFAS-funded students to pay a deposit or top-up payment so as to get usage of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement involving the personal accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease is going to be paid month-to-month to the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not have to have or permit the lessee to pay a deposit, top-up payments, or almost every other types of payment to the lessor, or some other person in nsfas allowances reference to this agreement, together with payment of rent, though awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect selection by NSFAS, the scholar won't be accountable for payment of any arrear rent on the accommodation service provider, up until finally the date of being defunded."

NSFAS check here discussed that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar nsfas university allowances are going to be answerable for payment of hire into the lessor from the read more day of staying defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student must immediately vacate the read more leased property; and will be liable for payment of all rent due to the accommodation provider.

"Where the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and any such rental payments will be for the student own account," the scheme said.

The scheme emphasised that any dispute arising between the parties regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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