Accommodation suppliers urged to end demanding deposit from NSFAS funded students



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

This comes following NSFAS obtained reports about some accommodation vendors who need NSFAS-funded students to pay for a deposit or top-up payment in order to get use of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors in the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement concerning the private accommodation suppliers and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent is going to be paid out month to month to your accommodation provider (lessor) by NSFAS, on behalf from the 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 need or permit the lessee to pay a deposit, top-up payments, or almost every other sorts of payment into the lessor, or another person in reference to this arrangement, which include payment of lease, when awaiting payment from NSFAS. The lessor shall don't have any recourse from the lessee for any default from the payment of 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 because of an incorrect decision by NSFAS, the scholar won't be responsible for payment of click here any arrear rent for the accommodation supplier, up right up until the day of being defunded."

NSFAS described that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student are going to be answerable for payment of rent to your lessor in the date of 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 more info the leased property; and will be liable for payment of all rent due to the accommodation provider.

"Where the student moves, accommodation providers without click here the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and any such check here rental payments will be for the student own account," the more info 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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