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 soon after NSFAS obtained reports about some accommodation providers who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement among the private accommodation suppliers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

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

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or any other kinds of payment into the lessor, or some other person in reference to this arrangement, such as payment of lease, when awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private here accommodation vendors’ participation on the student accommodation portal also more info states that: "Where the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the student will not be accountable for payment of any arrear rent on the accommodation company, up right until the day of being defunded."

NSFAS spelled out that where by the NSFAS-funded student chooses to carry on occupying the leased more info premises, notwithstanding currently being defunded by NSFAS, the student will be liable for payment of hire on the lessor within the day of getting defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian more info 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 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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