Accommodation providers 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 after NSFAS obtained reports about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment so as to get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement involving the non-public accommodation providers and NSFAS funded students," NSFAS stated in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will likely be paid out monthly for the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay for a deposit, top-up payments, or almost every other kinds of payment on the lessor, or some other person in connection with this arrangement, together with payment of lease, although awaiting payment from NSFAS. The lessor shall don't have any recourse in opposition to the lessee for any default inside the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect determination by NSFAS, the scholar won't be accountable for payment of any arrear rent towards the accommodation provider, up until finally the date of nsfas document submission deadline being defunded."

NSFAS spelled out that the place the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be liable for payment of rent to the lessor from the nsfas tvet day of currently being 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 website own account," the scheme said.

The scheme emphasised that any dispute arising between the parties click here 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. more info
From: SAnews.gov.za

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