Accommodation providers urged to stop 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 arrives just after NSFAS received experiences about some accommodation vendors who demand NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement among the private accommodation vendors and NSFAS funded students," NSFAS reported in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease will likely be paid every month on the accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or some other types of payment into the lessor, or some other person in reference to this agreement, together with payment of lease, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default inside the payment of rent get more info by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect choice by NSFAS, the scholar will not be answerable for payment of any arrear rent on the accommodation provider, up right nsfas university allowances until the date of being defunded."

NSFAS stated that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding here becoming defunded by NSFAS, the scholar is going to be liable for payment of lease to your lessor in the date of click here staying 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 get more info 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 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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