Accommodation vendors urged to end demanding deposit from NSFAS funded 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 comes just after NSFAS gained experiences about some accommodation suppliers who require NSFAS-funded students to pay a deposit or top-up payment to be able to get usage of the authorised private accommodation.

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

The Standardised Fixed-Term Lease Agreement states which the lease will be paid out monthly to the accommodation service provider (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 call for or permit the lessee to pay for a deposit, top-up payments, or any other varieties of payment on the lessor, or any other person in reference to here this arrangement, together with payment of lease, even though awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default during the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of read more an incorrect decision by NSFAS, the coed won't click here be answerable for payment of any arrear rent to the accommodation provider, up right up until the day of being defunded."

NSFAS spelled out that wherever the NSFAS-funded student chooses to carry nsfas on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar are going nsfas to be responsible for payment of hire on the lessor with 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 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 dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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