Accommodation vendors urged to stop demanding deposit from NSFAS funded university 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 arrives just after NSFAS gained experiences about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors in the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement involving the non-public accommodation companies and NSFAS funded students," NSFAS reported in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent will be paid month-to-month for the accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation providers’ 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 every other person in connection with this arrangement, such as payment of rent, when awaiting payment click here from NSFAS. The lessor shall haven't any recourse towards the lessee for any default from 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 resulting from an incorrect determination by NSFAS, the student will not be answerable for payment of any nsfas application delay arrear rent to the accommodation provider, up until eventually the day of being defunded."

NSFAS stated that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be responsible for payment of lease for the more info lessor from your date of being 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 here approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and any such rental payments will nsfas student allowances 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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