Accommodation providers urged to end demanding deposit from NSFAS funded 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 received stories about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment in order to get entry to the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of your obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement in between the private accommodation providers and NSFAS funded students," NSFAS stated in an announcement on Thursday.

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

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or every other types of payment to the lessor, or another person in reference to this agreement, including payment of rent, though awaiting payment from NSFAS. The lessor shall haven't here any recourse in opposition to the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the coed check here won't be accountable for payment of any arrear rent into the accommodation supplier, up right until the date of being check here defunded."

NSFAS discussed that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar will be accountable for payment of lease to your lessor through the here date 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 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 click here 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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