Accommodation companies urged to end demanding deposit from NSFAS funded 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 after NSFAS acquired stories about some accommodation vendors who demand NSFAS-funded students to pay a deposit or top-up payment in order to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement among the non-public accommodation providers and NSFAS funded students," NSFAS explained in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent might be paid out regular monthly into the accommodation provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not have to have or allow the lessee to pay for a deposit, top-up payments, or almost every other varieties of payment to the lessor, or any other person in connection with this arrangement, including payment of rent, while awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any default during the payment of rent by more info NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect decision by NSFAS, the student won't be chargeable for nsfas tvet payment of any arrear rent to the accommodation supplier, up until finally the date of being defunded."

NSFAS discussed that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the check here student are going to be answerable for payment of lease into the lessor more info with the date 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 for payment of all rent due to the accommodation provider.

"Where the student moves, accommodation nsfas university allowances 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, 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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