Accommodation suppliers urged to halt demanding deposit from NSFAS funded college students



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

This arrives immediately after NSFAS received stories about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get usage of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers in the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement concerning the private accommodation suppliers and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will probably be paid out month to month into the accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not require or permit the lessee to pay for a deposit, top-up payments, or any other kinds of payment to your lessor, or another person in reference to this arrangement, such as payment of lease, though awaiting payment from NSFAS. The lessor shall haven't any recourse against more info the lessee for any default within the payment of rent by NSFAS," the arrangement 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 as click here a consequence of an incorrect decision by NSFAS, the scholar won't be accountable for payment of any arrear rent on the accommodation supplier, up right up until the date of being defunded."

NSFAS defined that wherever the NSFAS-funded student more info chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student will be liable for payment of hire to the lessor within the day of remaining defunded.

"Where the student is defunded by NSFAS website 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 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 here 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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