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



The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.

This comes following NSFAS acquired reports about some accommodation vendors who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers in the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Settlement amongst the private accommodation suppliers and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will be paid regular monthly to your accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not need or permit the lessee to pay for a deposit, top-up payments, or every other kinds of payment to your lessor, or almost every other person in reference to this agreement, such as payment of rent, while awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default while in the payment of rent by NSFAS," click here the agreement 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 resulting from an incorrect choice by NSFAS, the scholar will not be accountable for payment of any arrear rent into the accommodation company, up right up until the day of being defunded."

NSFAS described that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar will be chargeable for payment of hire towards the lessor with the day of being 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 nsfas university allowances liable check here 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 nsfas status check 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 check here with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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