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 immediately after NSFAS gained reports about some accommodation vendors who need NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement in between the personal accommodation companies and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease will probably be paid month-to-month to the accommodation company (lessor) by NSFAS, on behalf from the 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 call for or allow the lessee to pay for a deposit, top-up payments, or another varieties of payment into the lessor, or another person in connection with this arrangement, together with payment of lease, while awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect selection by nsfas student document submission deadline NSFAS, the coed will not be accountable for payment of any arrear rent to the accommodation service provider, up right until the day of more info being defunded."

NSFAS defined that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar are going to be responsible for payment of hire towards the lessor within the day of staying defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian nsfas academic pathways 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 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 nsfas application delay procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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