Accommodation companies urged to halt demanding deposit from NSFAS funded students



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

This comes right after NSFAS gained stories about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the approved private accommodation.

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

The Standardised Fixed-Term Lease Agreement states the rent will be paid out every month to your accommodation supplier (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not have to have or permit the lessee to pay for a deposit, top-up payments, or some other sorts of payment for the lessor, or any other person in reference to this agreement, including payment of hire, although awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default within the payment of rent by 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 resulting from an incorrect selection by NSFAS, the scholar will not be answerable for payment of any arrear rent on the accommodation provider, up till the date of here being nsfas login defunded."

NSFAS stated that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar are going to be accountable for payment of lease to the lessor from your click here day of remaining defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at get more info any stage, the student must immediately vacate the leased property; and will be get more info 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 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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