Accommodation suppliers urged to stop 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 arrives soon after NSFAS obtained experiences about some accommodation vendors who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get access to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Arrangement concerning the personal accommodation providers and NSFAS funded students," NSFAS stated in a press release on Thursday.

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

"The lessor may not have to have or permit the lessee to pay for a deposit, top-up payments, or every other sorts of payment for the lessor, or every other person in connection with this agreement, such as payment of rent, even though awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default while in the payment of rent by NSFAS," the agreement 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 as a consequence of nsfas academic pathways an incorrect decision by NSFAS, the here scholar will not be answerable for payment of any arrear rent towards the accommodation service provider, 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 are going to be chargeable for payment of hire for the lessor through the day 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 nsfas student allowances 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 check here rental to the new accommodation provider, and read more 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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