Accommodation suppliers urged to end demanding deposit from NSFAS funded university students



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

This arrives following NSFAS been given stories about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment to be able to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers in the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Settlement involving the private accommodation suppliers and NSFAS funded students," NSFAS explained in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease is going to be paid out every month on the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not need or allow the lessee to pay for a deposit, top-up payments, or any other kinds of payment to your lessor, or another person in connection with this agreement, including payment of rent, whilst awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any default during 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 defunded on account of read more an incorrect selection by NSFAS, the coed will not be liable for payment of any arrear rent to the accommodation service provider, website up until the day of being defunded."

NSFAS spelled out that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the student is going to read more be accountable for payment of lease into the lessor from your date of getting defunded.

"Where the student is defunded by NSFAS due to a website misrepresentation by the lessee/guardian at any stage, the student must immediately vacate the leased property; and will be liable for payment of all here 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 be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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