Accommodation companies urged to stop demanding deposit from NSFAS funded college 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 arrives just after NSFAS obtained experiences about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment to be able to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers with the obligatory conditions, as provided by the Standardised Fixed-Term Lease Settlement between the private accommodation providers and NSFAS funded students," NSFAS explained in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent might be paid out every month towards the accommodation supplier (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or another sorts of payment on the lessor, or almost every other person in reference to this arrangement, together with payment of rent, whilst check here awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default within the payment of rent by NSFAS," the agreement reads.

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

NSFAS stated that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, click here the student will be liable for payment of hire for the lessor within the day of remaining 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, read more 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 get more info payments will be for the student own account," the scheme said.

The scheme emphasised that any dispute arising between the parties regarding the check here 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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