Accommodation providers urged to end 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 just after NSFAS been given stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of your compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement among the personal accommodation suppliers and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent is going to be paid out monthly on the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not need or allow the lessee to pay for a deposit, top-up payments, or any other types of payment to the lessor, or another person in reference to this agreement, together with payment of rent, even though awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect choice by NSFAS, the coed won't be answerable for payment of any arrear rent to the website accommodation provider, up until eventually the date of being defunded."

NSFAS described that where the NSFAS-funded student chooses to read more continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar is going to be responsible for payment of hire towards the lessor within 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, accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation check here 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 nsfas application delay in here accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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