Accommodation companies urged to halt 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 comes immediately after NSFAS been given stories about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment as a way to get entry to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers with the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement in between the personal accommodation vendors and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will probably be paid month-to-month towards the accommodation provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or any other varieties of payment to your lessor, or some other person in here connection with this arrangement, which includes payment of rent, when awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default inside the payment of rent by NSFAS," the arrangement 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 because of read more an incorrect choice by NSFAS, the coed won't be answerable for payment of any arrear rent for the accommodation supplier, up until the date of being defunded."

NSFAS explained that in which the NSFAS-funded student chooses to carry here on occupying the leased premises, notwithstanding more info staying defunded by NSFAS, the scholar will be accountable for payment of rent to the lessor from your day of currently 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 get more info 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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