Accommodation suppliers urged to halt demanding deposit from NSFAS funded college students



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

This arrives immediately after NSFAS received experiences about some accommodation vendors who need NSFAS-funded students to pay a deposit or top-up payment in order to get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the obligatory conditions, as provided by the Standardised Fixed-Term Lease Settlement involving the non-public accommodation providers and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease might be paid month-to-month into 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 have to have or allow the lessee to pay for a deposit, top-up payments, or another types of payment to your lessor, or almost every other person in connection with this agreement, such as payment of rent, even though awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student nsfas student document submission deadline accommodation portal also states that: "Where nsfas status check the NSFAS-funded student is defunded resulting read more from an incorrect selection by NSFAS, the coed will not be responsible for payment of any arrear rent to your accommodation service provider, up until eventually the day of being defunded."

NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student will be liable for payment of hire into the lessor from the date of getting defunded.

"Where the student is defunded by NSFAS due to a misrepresentation nsfas 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 nsfas student allowances 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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