Accommodation providers 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 after NSFAS received experiences about some accommodation vendors who require NSFAS-funded students to pay a deposit or top-up payment in order to get use of the approved private accommodation.

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

The Standardised Fixed-Term Lease Agreement states that the rent will be paid out month-to-month for the accommodation company (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay for a deposit, top-up payments, or any other forms of payment towards the lessor, or some other person in reference to this agreement, together with payment of hire, while awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee read more for any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on click here the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect selection by NSFAS, the scholar won't be click here chargeable for payment of any arrear rent on the accommodation service provider, up right until the date of being defunded."

NSFAS explained that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the student are going to be answerable for payment of lease on the lessor from 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, more info 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, more info 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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