Accommodation providers urged to end demanding deposit from NSFAS funded university 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 received experiences about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment so as to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors in the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement in between the personal accommodation vendors and NSFAS funded students," NSFAS stated in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent might be paid out regular to the accommodation supplier (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or some other kinds of payment towards the lessor, or some other person in connection with this agreement, including payment of hire, while awaiting payment from NSFAS. The lessor shall get more info haven't any recourse from the lessee for any default from the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect choice by NSFAS, the scholar will not be chargeable for payment of any arrear rent to the accommodation supplier, up until finally the date of being defunded."

NSFAS spelled out that in which the NSFAS-funded student chooses to carry click here on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar are going to be responsible for payment of hire for the lessor with the day 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 the leased property; here and will be liable for payment of all rent due to the accommodation provider.

"Where the check here student moves, accommodation providers without the prior approval of NSFAS, NSFAS may elect check here 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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