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



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

This comes after NSFAS acquired reports about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment so that you can get use of the accepted private accommodation.

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

The Standardised Fixed-Term Lease Agreement states the lease will probably be paid month-to-month on the accommodation company (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or some other sorts of payment into the lessor, or another person in connection with this arrangement, including payment of hire, though awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any nsfas eligibility criteria default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation get more info portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect selection by NSFAS, the student won't be answerable for payment of any arrear rent to your accommodation supplier, up till the day of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student is going to be liable for payment of lease to the lessor with the day of getting defunded.

"Where the student here 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 any such rental payments will check here be for the student own account," the scheme said.

The scheme emphasised that any dispute arising between the here 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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