Accommodation vendors urged to end demanding deposit from NSFAS funded 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 arrives following NSFAS acquired experiences about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment so that you can get use of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers on the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement concerning the private accommodation companies and NSFAS funded students," NSFAS explained in a press release on Thursday.

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

"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or any other sorts of payment for the lessor, or any other person in reference to this arrangement, which include payment of rent, when awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is get more info defunded due to an incorrect choice by NSFAS, the read more scholar will not be responsible for payment of any arrear rent into website the accommodation supplier, up right until the date of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student will read more be answerable for payment of lease into the lessor from the date of becoming 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 nsfas student allowances 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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