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 right after NSFAS acquired experiences about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment so as to get usage of the authorized private accommodation.

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

The Standardised Fixed-Term Lease Agreement states that the lease might be paid monthly into the accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not call for or permit the lessee to pay a deposit, top-up payments, or any other forms of payment to the lessor, or another person in reference to this agreement, such as payment of hire, when read more awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default during 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 the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the scholar will not be accountable for payment of check here any arrear rent to your accommodation supplier, up till the date of being defunded."

NSFAS explained that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, nsfas document submission deadline the student is going to be chargeable for payment of hire into the lessor within the 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 here 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 nsfas application delay 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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