Accommodation vendors urged to end demanding deposit from NSFAS funded university 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 comes following NSFAS been given reports about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment to be able to get entry to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies with the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement between the private accommodation companies and NSFAS funded students," NSFAS reported in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent might be paid regular on the accommodation company (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not need or permit the lessee to pay for a deposit, top-up payments, or every other types of payment on the lessor, or almost every other person in reference to this agreement, which includes payment of hire, while awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default from the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on the here student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect determination by NSFAS, the coed will not be liable for payment of any arrear rent to the accommodation company, up till the day of being defunded."

NSFAS stated that the place the NSFAS-funded student chooses read more to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar are going to be chargeable for payment of rent on the lessor in the day of 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 click here 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 get more info implementation of the agreement, must be dealt with in accordance with any dispute resolution procedure determined more info by NSFAS for this purpose.
From: SAnews.gov.za

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