Accommodation vendors urged to end demanding deposit from NSFAS funded university 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 stories about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get entry to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Settlement between the personal accommodation companies and NSFAS funded students," NSFAS reported in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease is going to be paid out every month for the accommodation service provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal 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 any other kinds of payment into the lessor, or any other person in connection get more info with this agreement, like payment of lease, even though awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect decision by NSFAS, the student won't be answerable for payment of any arrear rent into the accommodation service provider, up until the day of being defunded."

NSFAS spelled out that in which the NSFAS-funded student chooses to here continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar will be liable for payment of lease for the lessor in the more info day 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 nsfas student allowances be liable for payment of all rent due nsfas application delay 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 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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