Accommodation providers 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 comes right after NSFAS been given reports about some accommodation companies who need NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the authorised private accommodation.

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

The Standardised Fixed-Term Lease Agreement states the rent will probably be paid out month-to-month towards the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation vendors’ 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 almost every other kinds of payment towards the lessor, or another person in connection with this arrangement, which include payment of rent, though awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect determination by NSFAS, the student will here not be answerable for payment of any arrear rent towards the accommodation supplier, up until the date of being defunded."

NSFAS spelled out that where the NSFAS-funded student chooses to continue occupying nsfas student allowances the leased premises, notwithstanding getting defunded here by NSFAS, the scholar is going to be answerable for payment of hire to the lessor from your date of getting 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 more info 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 nsfas academic pathways any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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