Accommodation vendors urged to stop demanding deposit from NSFAS funded university 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 been given stories about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment to be able to get usage of the approved private accommodation.

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

The Standardised Fixed-Term Lease Agreement states the lease will probably be paid every month to the accommodation service provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not need or permit the lessee to pay a deposit, top-up payments, or some other types of payment towards the lessor, or some other person in connection with this agreement, together with payment of lease, even though awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and here terms for private accommodation providers’ participation on check here the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect choice by NSFAS, the scholar won't be accountable for payment of any arrear rent to your accommodation provider, up until the date of being defunded."

NSFAS explained that the place the NSFAS-funded student chooses to carry on more info occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar will be chargeable for payment of rent to the lessor from the day of currently being 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 get more info property; and check here 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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