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

This arrives just after NSFAS obtained reports about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get usage of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies in the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement involving the non-public accommodation suppliers and NSFAS funded students," NSFAS explained in a press release on Thursday.

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

"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or every other types of payment on the lessor, or some other person in connection with this arrangement, which includes payment of rent, although awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for get more info any default while in the payment more info 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 click here defunded as a result of an incorrect determination by NSFAS, the student will not be chargeable for payment of any arrear rent towards the accommodation company, up until finally the day of being defunded."

NSFAS described that in which the NSFAS-funded here student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be chargeable for payment of lease to the lessor from 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 get more info 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