Accommodation suppliers urged to end 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 comes just after NSFAS gained stories about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment so as to get usage of the permitted private accommodation.

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

The Standardised Fixed-Term Lease Agreement states that the lease will likely be paid out regular monthly into the accommodation provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not call for or permit the lessee to pay a deposit, top-up payments, or every other types of payment for the lessor, or some other person in connection with this arrangement, including payment of rent, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse from the lessee for any default in the payment of rent check here by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect selection by NSFAS, the student will click here not be accountable for payment of any arrear rent for the accommodation supplier, up until eventually the date of being defunded."

NSFAS described that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student is going to be responsible for payment of rent to your website lessor through 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 nsfas document submission deadline of all rent due to the accommodation provider.

"Where the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may check here 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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