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



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This arrives just after NSFAS received reports about some accommodation vendors who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get entry to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement among the private accommodation suppliers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

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

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or every other sorts of payment towards the lessor, or another person in connection with this arrangement, including payment of nsfas status check lease, though awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the coed won't be answerable for payment of here any arrear rent towards the accommodation supplier, up right until the day of being defunded."

NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently more info being defunded by NSFAS, the scholar is going to be chargeable for payment of lease website to your lessor within the day of staying 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 here 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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