Accommodation suppliers urged to stop demanding deposit from NSFAS funded college 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 arrives right after NSFAS acquired stories about some accommodation vendors who require NSFAS-funded students to pay a deposit or top-up payment in order to get entry to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement involving the personal accommodation companies and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease are going to be paid out every month for the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not call for or permit the lessee to pay a deposit, top-up payments, or every other forms of payment for the lessor, or almost every other person in reference to this agreement, which include payment of rent, even though awaiting payment get more info from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any click here default inside the payment of rent by NSFAS," the agreement 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 due to an incorrect selection by NSFAS, the scholar will not be liable for payment of any arrear rent to your accommodation provider, up until eventually the day of being defunded."

NSFAS discussed that where the NSFAS-funded student chooses to continue occupying the website leased premises, notwithstanding currently being defunded by NSFAS, the scholar will be accountable for payment of lease into the lessor from 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 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 nsfas arising between the parties regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute resolution procedure click here determined by NSFAS for this purpose.
From: SAnews.gov.za

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