Accommodation companies 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 comes following NSFAS gained stories about some accommodation vendors who require NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the permitted private accommodation.

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

The Standardised Fixed-Term Lease Agreement states which the lease are going to be paid out regular to your accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not have to have or allow the lessee to pay a deposit, top-up payments, or any other sorts of payment for the lessor, or another person in connection with this agreement, together with payment of rent, though awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default while in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where website the NSFAS-funded student is defunded due to an incorrect selection by NSFAS, the student won't be accountable for payment of any arrear rent on the accommodation company, up right up until the day of being defunded."

NSFAS described that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar will be here responsible for payment of hire on the lessor with the nsfas student document submission deadline 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 be liable for payment of all rent due to the accommodation provider.

"Where the student moves, accommodation providers without the prior approval of website 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 more info be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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