Accommodation vendors urged to stop demanding deposit from NSFAS funded college students



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

This arrives soon after NSFAS obtained experiences about some accommodation providers who require NSFAS-funded students to pay a deposit or top-up payment as a way to get usage of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies with the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement involving the non-public accommodation vendors and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease will probably be paid regular into the accommodation company (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or some other kinds of payment to your lessor, or some other person in connection with this arrangement, which includes payment of hire, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the nsfas eligibility criteria lessee for any default while in the payment of rent nsfas eligibility criteria by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect determination by NSFAS, the scholar won't be accountable for payment of any arrear rent for the accommodation company, up right until the day of being defunded."

NSFAS defined that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student are going to here be chargeable for payment of hire towards the lessor through the day of staying defunded.

"Where the student is defunded by NSFAS due here 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 nsfas student document submission deadline 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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