Accommodation companies urged to end demanding deposit from NSFAS funded college students



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.

This comes right after NSFAS received reports about some accommodation suppliers who require NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement among the non-public accommodation providers and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid regular towards the accommodation supplier (lessor) by NSFAS, on behalf on 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 require or permit the lessee to pay a deposit, top-up payments, or any other types of payment to your lessor, or another 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 in opposition to the lessee for any default from the payment of rent by NSFAS," get more infohere the arrangement reads.

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

NSFAS discussed that where the NSFAS-funded student chooses to carry on occupying the leased read more premises, notwithstanding becoming defunded by NSFAS, the student is going to be liable for payment of rent on the lessor with the date of getting defunded.

"Where the student is defunded more info 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 nsfas allowances 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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