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



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This arrives just after NSFAS been given stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment so as to get access to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Settlement in between the non-public accommodation providers and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent might be paid out every month into the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not have to have or permit the lessee to pay a deposit, top-up payments, or almost every other varieties of payment to the lessor, or another person in reference to this agreement, which include payment of lease, although awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any click here default while in the payment of rent by NSFAS," the agreement 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 on account of an incorrect choice more info by NSFAS, the coed will not be answerable for payment of any arrear rent into the accommodation supplier, up until eventually the more info day of being defunded."

NSFAS stated that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar will be responsible for payment of hire on the lessor through the day 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 not to pay any rental to the new accommodation provider, and any such rental more info 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 website 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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