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 soon after NSFAS been given stories about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get usage of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement among the private accommodation suppliers and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease might be paid month-to-month towards the accommodation service provider (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 need or permit the lessee to pay for a deposit, top-up payments, or some other types of payment into the lessor, or almost every other person in connection with this arrangement, which include payment of lease, whilst awaiting payment from NSFAS. The lessor shall have no recourse nsfas student allowances in opposition to the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the scholar will not be answerable for payment of any arrear rent into the accommodation service provider, up till the date of being defunded."

NSFAS discussed that wherever the NSFAS-funded student chooses to carry on more info occupying the leased premises, notwithstanding becoming defunded by NSFAS, the read more student is going to be answerable for payment of rent on the lessor with the day of becoming 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 click here 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 website 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