Accommodation suppliers 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 soon after NSFAS been given experiences about some accommodation vendors who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement in between the personal accommodation vendors and NSFAS funded students," NSFAS said in a press release on Thursday.

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

"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or any other types of payment to the lessor, or some other person in connection with this arrangement, including payment of rent, though awaiting payment from NSFAS. The lessor shall here have no recourse in opposition to the lessee for any default in 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 read more states that: "Where the NSFAS-funded student is defunded on account of an incorrect determination by NSFAS, the student will not be responsible for payment of any arrear rent into the accommodation supplier, up here until finally the date of being defunded."

NSFAS discussed that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be responsible for payment of hire to the lessor through the date of currently being more info 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 website 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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