Accommodation companies urged to end demanding deposit from NSFAS funded college 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 comes after NSFAS acquired experiences about some accommodation vendors who demand NSFAS-funded students to pay for a deposit or top-up payment so as to get usage of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement concerning the non-public accommodation suppliers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

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

"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or almost every other types of payment to your lessor, or any other person in connection with this arrangement, such as payment of get more info rent, while 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 conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the check here student will not be answerable for payment of any arrear rent towards the accommodation supplier, up right until the day of being defunded."

NSFAS nsfas university allowances explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be liable for payment of rent to the lessor from the day of staying 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 check here 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 click here 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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