Accommodation companies urged to stop demanding deposit from NSFAS funded college students



The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.

This arrives after NSFAS gained experiences about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment as a way to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement among the personal accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.

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

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

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal nsfas university allowances also states that: "Where the NSFAS-funded student is defunded due to an incorrect selection by NSFAS, the scholar won't be answerable for read more payment of any arrear rent towards the accommodation supplier, up right up until the day of being defunded."

NSFAS spelled out that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student is going to be answerable for payment of lease to the lessor through the day of getting defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at nsfas any stage, the student must immediately vacate the leased property; and here 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 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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