Accommodation providers urged to halt demanding deposit from NSFAS funded 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 after NSFAS gained reports about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of your compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement concerning the private accommodation suppliers and NSFAS funded students," NSFAS said in a statement on Thursday.

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

"The lessor may not need or permit the lessee to pay for a deposit, top-up payments, or every other sorts of payment to the lessor, or some other person in reference to this arrangement, which includes payment of rent, whilst 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 companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the coed will not be chargeable for payment of any arrear rent to click here the accommodation company, up until the date of being defunded."

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

"Where the student is defunded by here 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 student allowances 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 be dealt with in accordance with any nsfas student allowances dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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