Accommodation companies urged to halt demanding deposit from NSFAS funded 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 arrives following NSFAS been given reports about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment so as to get access to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement involving the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease are going to be paid out monthly towards the accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or any other types of payment into the lessor, or another person in connection with this agreement, including payment of rent, although awaiting payment from NSFAS. The lessor shall have no recourse against nsfas student allowances the lessee for check here any default during the payment of rent by NSFAS," the arrangement 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 as a result of an incorrect determination by NSFAS, the student won't be accountable for payment of any arrear rent into the accommodation service provider, up right until the date of being defunded."

NSFAS described that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar will be chargeable for payment of lease on the lessor through the date of staying defunded.

"Where the nsfas eligibility criteria student is defunded by NSFAS due to a misrepresentation by read more 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 check here 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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