Accommodation companies urged to halt demanding deposit from NSFAS funded students



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

This arrives following NSFAS received reports about some accommodation vendors who require NSFAS-funded students to pay for a deposit or top-up payment in order to get use of the authorized private accommodation.

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

The Standardised Fixed-Term Lease Agreement states that the rent is going to be paid out regular monthly on the accommodation provider (lessor) by NSFAS, on behalf from 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 require or allow the lessee to pay for a deposit, top-up payments, or any other types of payment towards the lessor, or another person in connection with this agreement, such as payment of lease, when awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default from the payment of rent by NSFAS," the nsfas university allowances 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 on account of an incorrect choice by NSFAS, the coed will not be accountable for payment of any arrear rent into the check here accommodation supplier, up until finally the date of being defunded."

NSFAS stated that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the student are going to be accountable for payment of hire to your lessor from the date of getting 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 click here 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 check here any dispute arising between the parties regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute here resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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