Accommodation providers urged to end demanding deposit from NSFAS funded university students



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

This comes immediately after NSFAS been given stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment so that you can get entry to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement involving the non-public accommodation providers and NSFAS funded students," NSFAS said in an announcement on Thursday.

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

"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or almost every other varieties of payment to your lessor, or almost every other person in reference to this agreement, such as payment of rent, though awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default inside 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 defunded because of an incorrect selection by NSFAS, the student more info won't be accountable for payment of any arrear rent to the accommodation company, up until finally the day of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to continue nsfas student allowances occupying the leased premises, notwithstanding staying defunded by NSFAS, the student is going to be accountable for payment of lease towards read more the lessor within the date of getting 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 read more 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

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