Accommodation providers urged to stop demanding deposit from NSFAS funded 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 arrives after NSFAS been given reports about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement among the personal accommodation suppliers and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent will likely be paid regular to your accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation suppliers’ 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 another varieties of payment into the lessor, or almost every other person in connection with this arrangement, like payment of rent, though awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is website defunded due to an incorrect selection by NSFAS, the student will not be answerable for payment of any arrear rent for the accommodation company, up until finally the day of being defunded."

NSFAS defined that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar is going to be accountable here for payment of lease towards the lessor within the day of remaining defunded.

"Where the student is defunded by NSFAS due to here 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, read more 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, get more info 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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