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



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

This arrives just after NSFAS received stories about some accommodation suppliers who require NSFAS-funded students to pay a deposit or top-up payment in an effort to get usage of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement between the private accommodation vendors and NSFAS funded students," NSFAS reported in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will probably be paid regular monthly into the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or another sorts of payment to your lessor, or almost every other person in connection with this agreement, together with payment of lease, even though nsfas student allowances awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee more info for any default within the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation vendors’ 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 chargeable for payment of any arrear rent to the accommodation provider, up right until the date of being defunded."

NSFAS explained that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student is going to be liable for payment of rent on the lessor within the day of getting defunded.

"Where the student is defunded by NSFAS due to a misrepresentation more info 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 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 click here dispute nsfas student allowances resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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