Accommodation vendors urged to stop demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This arrives following NSFAS obtained reports about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment to be able to get usage of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement among the non-public accommodation providers and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent will likely be paid out every month to your accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or every other kinds of payment for the lessor, or some other person in connection with this agreement, including check here payment of rent, while awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default during the payment of rent by NSFAS," here the arrangement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect decision by NSFAS, the student won't be accountable for payment of any arrear rent to your nsfas academic pathways accommodation company, up right up until the date of being defunded."

NSFAS stated that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student are going to be responsible for payment of rent on the lessor in the day of being 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 more info 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 website 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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