Accommodation providers urged to halt demanding deposit from NSFAS funded college students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.

This comes immediately after NSFAS acquired experiences about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers in 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 which the lease might be paid regular monthly on the accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or almost every other varieties of payment for the lessor, or some other person in reference to this arrangement, together with payment of rent, when awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any default in the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on more info the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect selection by NSFAS, the student won't be accountable for payment of any arrear rent into the accommodation supplier, up until finally the day of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar is going to be answerable for payment of lease to your lessor in the date of staying click here 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 more info the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the here new accommodation website 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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