Accommodation companies urged to halt 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 comes soon after NSFAS received reports about some accommodation vendors who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers in the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement involving the private accommodation vendors and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid out regular monthly to the accommodation supplier (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation vendors’ 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 kinds of payment into the lessor, or some other person in reference to this arrangement, nsfas university allowances which includes payment of lease, when awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect selection by NSFAS, the scholar will not be answerable for payment of any arrear rent to your accommodation supplier, up right up until the date of being defunded."

NSFAS explained that where by the NSFAS-funded student chooses to carry on occupying nsfas student allowances the leased premises, notwithstanding getting defunded by NSFAS, the scholar is going to be answerable check here for payment of lease to the lessor within the date of staying 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 providers without the prior approval of NSFAS, NSFAS may elect not to pay any read more rental to the new accommodation provider, and any such rental payments will be for the student own account," the scheme said.

The scheme nsfas tvet 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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