Accommodation vendors urged to end demanding deposit from NSFAS funded university 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 comes after NSFAS received experiences about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement concerning the personal accommodation vendors and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will be paid month-to-month into the accommodation company (lessor) by NSFAS, on behalf of your 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 need or allow the lessee to pay for a deposit, top-up payments, or almost every other types of payment for the lessor, or almost every other person in reference to this arrangement, together with payment of hire, whilst check here awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation companies’ participation click here on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect determination by NSFAS, the scholar won't be chargeable for payment of any arrear rent on the accommodation service provider, up right until the day of being defunded."

NSFAS described that the place the NSFAS-funded student chooses to check here continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be accountable for payment of hire to your lessor from your date of remaining defunded.

"Where the student is defunded by NSFAS due to a website 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 check here 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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