Accommodation companies 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 immediately after NSFAS gained reports about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment so that you can get access to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors with the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement among the non-public accommodation suppliers and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent might be paid month to month to the accommodation supplier (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or any other forms of payment on the lessor, or almost every other person in reference to website this arrangement, which include payment of hire, though awaiting payment here from NSFAS. The lessor shall haven't any recourse from the lessee for any default during the get more info payment of rent by NSFAS," the agreement 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 because of an incorrect selection by NSFAS, the coed won't be responsible for payment of any arrear rent to the accommodation supplier, up till the date of being defunded."

NSFAS discussed that where by the NSFAS-funded student chooses nsfas eligibility criteria to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be liable for payment of rent to the lessor from your day of remaining 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 here 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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