Accommodation suppliers 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 arrives after NSFAS been given reports about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment in an effort to get entry to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of your obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement amongst the non-public accommodation vendors and NSFAS funded students," NSFAS reported in a statement on Thursday.

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

"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or almost every other kinds of payment towards the lessor, or some other person in connection with this arrangement, more info like payment of hire, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default inside the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for click here private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect selection by NSFAS, the scholar won't be chargeable for payment of any arrear rent into the accommodation provider, up till the date of being defunded."

NSFAS stated that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the read more student will be responsible for payment of hire into the lessor within the date of becoming 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 read more elect not to pay any rental check here 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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