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



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.

This arrives immediately after NSFAS obtained stories about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment in an effort to get usage of the approved private accommodation.

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

The Standardised Fixed-Term Lease Agreement states the rent will likely be paid regular monthly towards the accommodation provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not call for or permit the lessee to pay a deposit, top-up payments, or every other forms of payment to the lessor, or almost every other person in reference to this arrangement, including payment of lease, whilst awaiting payment from NSFAS. The lessor shall don't have any nsfas recourse in opposition to the lessee for any default within the payment of rent by NSFAS," the agreement 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 on account of an incorrect selection by NSFAS, the coed will not be chargeable for payment of any arrear rent into the accommodation company, up until finally the date of being defunded."

NSFAS discussed that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, read more the student are going to be liable for payment of rent for the lessor with the day of remaining defunded.

"Where the student is click here 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 nsfas allowances 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 here 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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