Accommodation vendors urged to stop demanding deposit from NSFAS funded college students



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

This arrives just after NSFAS acquired stories about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors with the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement involving the personal accommodation providers and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease might be paid month to month for the accommodation provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation suppliers’ 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 every other forms of payment to your lessor, or some other person in connection with this arrangement, such as payment of hire, although awaiting payment from NSFAS. The nsfas student document submission deadline lessor shall here have no recourse from the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect determination by NSFAS, the student won't be chargeable for payment of any arrear rent on the accommodation provider, up until finally the date of being defunded."

NSFAS defined that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being here defunded by NSFAS, the scholar is going to be responsible for payment of rent to the lessor from the day of being click here 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 here 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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