Accommodation companies urged to halt demanding deposit from NSFAS funded college students



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

This arrives after NSFAS received experiences about some accommodation providers who require NSFAS-funded students to pay a deposit or top-up payment in an effort to get use of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers with the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement concerning the non-public accommodation vendors and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent is going to be paid regular monthly on the accommodation supplier (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or almost every other types of payment into the lessor, or every other person in reference to this arrangement, which includes payment of lease, while click here awaiting payment from NSFAS. The lessor shall don't have any recourse from the lessee for any default within the payment of rent read more by NSFAS," the agreement 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 result of an incorrect selection by NSFAS, the scholar won't be answerable for payment of any arrear rent to the accommodation provider, up right up until the date of being defunded."

NSFAS discussed that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar are going to be chargeable for payment of rent to the lessor from the day 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 nsfas application delay leased property; and will be liable nsfas academic pathways 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 get more info 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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