Accommodation providers urged to stop 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 after NSFAS been given stories about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment so as to get entry to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement between the personal accommodation suppliers and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent might be paid out monthly towards the accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or another types of payment on the lessor, or almost every other person in reference to this arrangement, including payment of rent, whilst awaiting payment from NSFAS. The lessor shall have no recourse towards nsfas academic pathways the lessee for any default from the payment of nsfas document submission deadline rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on 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 responsible for payment of any arrear rent for the accommodation supplier, up right until the date of being defunded."

NSFAS explained that where by the NSFAS-funded student chooses to continue occupying the more info leased premises, notwithstanding getting defunded by NSFAS, the student is going to be liable for payment of rent into the lessor from your day of get more info getting 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 get more info 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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