Accommodation suppliers urged to halt demanding deposit from NSFAS funded 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 comes after NSFAS obtained stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement involving the private accommodation suppliers and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will be paid every month towards the accommodation company (lessor) by NSFAS, on behalf with 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 need or permit the lessee to pay a deposit, top-up payments, or every other types of payment for the lessor, or some other person in connection with this arrangement, together with payment of hire, even though awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any default within the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation read more portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect determination by NSFAS, the coed will not be chargeable for payment of any arrear rent on the nsfas allowances accommodation provider, up until eventually the date of being defunded."

NSFAS stated that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be accountable for payment of lease to your lessor in 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 nsfas academic pathways 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, more info must be dealt with in read more accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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