Accommodation companies urged to halt demanding deposit from NSFAS funded 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 comes after NSFAS gained experiences about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment in order to get access to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement between the non-public accommodation vendors and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent might be paid out monthly on the accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not have to have or permit the lessee to pay for a deposit, top-up payments, or almost every other types of payment to your lessor, or another person in connection with this arrangement, such as payment of hire, while awaiting payment from NSFAS. The lessor shall haven't any recourse against the lessee for any default while in 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 as a result of an incorrect choice by NSFAS, the student will not be nsfas academic pathways chargeable for payment of any arrear rent to the accommodation supplier, up right until the date of being defunded."

NSFAS stated that the place the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student is going to be accountable for payment of lease on the lessor from the date of remaining defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student must nsfas student allowances immediately vacate the leased property; and more info will be liable for payment of all rent due to the accommodation provider.

"Where the student moves, accommodation read more 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 get more info be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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