Accommodation suppliers urged to stop 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 comes just after NSFAS received experiences about some accommodation vendors who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get usage of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers on the obligatory conditions, as provided by the Standardised Fixed-Term Lease Settlement among the personal accommodation vendors and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid regular towards the accommodation company (lessor) by NSFAS, on behalf with 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 call for or allow the lessee to pay a deposit, top-up payments, or almost every other sorts of payment to your lessor, or another person in reference to this agreement, like payment of lease, although awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default during the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of check here an incorrect determination by NSFAS, the coed won't be chargeable for payment of any arrear rent on the accommodation service provider, up until eventually the date of being defunded."

NSFAS spelled out read more that exactly where the NSFAS-funded student chooses click here to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar will be chargeable for payment of hire to the lessor through the date of currently 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 get more info without the nsfas eligibility criteria 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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