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



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

This comes immediately after NSFAS acquired reports about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment so that you can get use of the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors with the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement between the personal accommodation suppliers and NSFAS funded students," NSFAS explained in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will probably be paid monthly on 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 involve or allow the lessee to pay for a deposit, top-up payments, or another forms of payment towards the lessor, or every other person in connection with this arrangement, including payment of hire, while awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default while in the payment of rent by NSFAS," the agreement reads.

The here NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student nsfas university allowances is defunded due to an incorrect determination by NSFAS, the coed won't be answerable for payment of any arrear rent to the accommodation company, up right up until the day of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the read more student here are going to be chargeable for payment of lease into the lessor within the date of staying 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 arising between the parties regarding the interpretation or implementation of the agreement, must nsfas student allowances be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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