Accommodation suppliers urged to end demanding deposit from NSFAS funded 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 following NSFAS obtained reports about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment so that you can get access to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement involving the private accommodation providers and NSFAS funded students," NSFAS said in a statement on Thursday.

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

"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or any other types of payment to your lessor, or any other person in connection with this arrangement, together with payment of lease, even though awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default from the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the student will not be liable for payment of any arrear rent to the accommodation service provider, up till the date of being defunded."

NSFAS read more stated that the place the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be liable for payment of rent to your lessor from your day of being defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any click here 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 providers without the prior approval of NSFAS, NSFAS may elect not check here to pay any rental to the new accommodation provider, and any such rental payments will be for the student own click here 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 click here in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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