Accommodation companies 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 comes soon after NSFAS gained experiences about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement among the private accommodation vendors and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent are going to be paid out regular for the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or every other forms of payment to your lessor, or some other person in reference to this agreement, such as payment of hire, although awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default within the payment of rent by NSFAS," the arrangement 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 as a result of an incorrect determination by NSFAS, the student won't be accountable for payment of any arrear rent to your accommodation provider, up right until the date of being defunded."

NSFAS spelled get more info out that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student is going to be liable for payment of rent to your lessor from the date of nsfas application delay staying defunded.

"Where the student is defunded by NSFAS due more info 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 website 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 check here 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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