Accommodation providers urged to end 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 arrives following NSFAS been given stories about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment in an effort to get entry to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of your compulsory conditions, as provided by the Standardised Fixed-Term Lease Arrangement in between the non-public accommodation providers and NSFAS funded students," NSFAS explained in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will likely be paid out month to month into the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or every other types of payment on the lessor, or another person in connection with this arrangement, such as payment of lease, although awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default during the here payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect decision by NSFAS, the student will not be responsible for payment of any arrear rent to your accommodation service provider, up till the date of being defunded."

NSFAS described that where the NSFAS-funded student chooses to continue occupying the leased premises, nsfas university allowances notwithstanding becoming defunded by NSFAS, the scholar is going to be responsible for payment of lease towards the lessor with the date of getting 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 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 more info 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 website the parties regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute resolution procedure determined click here by NSFAS for this purpose.
From: SAnews.gov.za

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