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

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

The Standardised Fixed-Term Lease Agreement states which the lease will probably be paid out regular monthly to the accommodation provider (lessor) by NSFAS, on behalf of the 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 varieties of payment to your lessor, or some other person in connection with this agreement, including payment of lease, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default from the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation more info on the student accommodation portal also states that: "Where the NSFAS-funded student is nsfas student allowances defunded because of an incorrect selection by NSFAS, the coed won't be chargeable for payment of any arrear rent into the accommodation service provider, up until eventually the day of being defunded."

NSFAS spelled out that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar is going to be chargeable for payment of lease to your lessor with the day of remaining defunded.

"Where the student is defunded by NSFAS due to check here 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 payments will here 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 check here NSFAS for this purpose.
From: SAnews.gov.za

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