Accommodation companies urged to end 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 arrives just after NSFAS gained experiences about some accommodation providers who require NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Agreement involving the non-public accommodation suppliers and NSFAS funded students," NSFAS reported in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent is going to be paid out regular to the accommodation provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not have to have or permit the lessee to pay for a deposit, top-up payments, or some other varieties of payment on the lessor, or any other person in connection with this arrangement, including payment of rent, even though awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default from the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect determination by NSFAS, the student check here will not be liable for payment of any arrear rent into the accommodation provider, up until finally the day of being defunded."

NSFAS discussed 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 answerable for payment of lease to your lessor within the day of remaining defunded.

"Where the read more student is defunded by NSFAS due nsfas student allowances 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 website 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 get more info 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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