Accommodation vendors 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 soon after NSFAS acquired stories about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement between the private accommodation providers and NSFAS funded students," NSFAS said in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent are going to be paid monthly to the accommodation supplier (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or almost every other types of payment to your lessor, or another person in connection with this arrangement, which includes payment of rent, even though awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default inside the payment of rent by NSFAS," the agreement reads.

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

NSFAS described that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding staying defunded by NSFAS, the student is going to be responsible for payment of rent on the lessor from the day of currently being defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, click here the student must immediately vacate the leased property; and will be liable for payment of all nsfas login rent due to the accommodation provider.

"Where the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay click here any rental to the new nsfas student allowances 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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