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



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

This arrives after NSFAS received experiences about some accommodation providers who demand 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 suppliers from the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement in between the private accommodation suppliers and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease is going to be paid out regular into the accommodation company (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not call for or permit the lessee to pay for a deposit, top-up payments, or another sorts of payment to the lessor, or every other person in reference to this agreement, like payment of hire, whilst awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect decision by NSFAS, the scholar will not be liable for payment of any arrear rent into here the accommodation service provider, up right up until the date of being defunded."

NSFAS described that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar will be chargeable for payment of hire read more to your lessor in the date of becoming 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 website not to pay any rental to the new accommodation provider, and any such rental check here 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 nsfas 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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