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 arrives soon after NSFAS received stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment in order to get usage of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors with the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement involving the private accommodation vendors and NSFAS funded students," NSFAS explained in a press release on Thursday.

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

"The lessor may not demand or permit the lessee to pay for a deposit, top-up payments, or another forms of payment to the lessor, or any other person in reference to this agreement, which include payment of lease, even though awaiting payment from NSFAS. The lessor shall don't have any recourse from the lessee for any default within the payment of rent by NSFAS," 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 as a consequence of an incorrect read more selection by NSFAS, the coed will not be answerable for payment of any arrear rent to your accommodation supplier, up until the day of being defunded."

NSFAS stated that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar will be accountable for payment of hire towards check here the lessor from your day of becoming defunded.

"Where the student is defunded by NSFAS click here 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 any such rental payments will be for the student own check here account," the scheme said.

The scheme emphasised that any dispute arising between the parties regarding the interpretation or nsfas document submission deadline 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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