Accommodation suppliers urged to stop 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 comes following NSFAS gained reports about some accommodation suppliers who require NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement between the personal accommodation companies and NSFAS funded students," NSFAS stated in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent is going to be paid out regular on the accommodation supplier (lessor) by NSFAS, on behalf of 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 call for or permit the lessee to pay for a deposit, top-up payments, or any other varieties of payment to the lessor, or any other person in reference to this arrangement, including payment of hire, while awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default during the payment of rent by NSFAS," the arrangement 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 defunded because of an incorrect decision by NSFAS, the more info scholar will not be responsible for nsfas university allowances payment of any arrear rent on the accommodation supplier, up right up until the date of being defunded."

NSFAS explained that where by the NSFAS-funded student here chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar will be responsible for payment of hire on the lessor in the date of currently being 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 click here leased property; and will be liable for payment of all rent due to the website 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 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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