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



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.

This comes after NSFAS received reports about some accommodation vendors who require NSFAS-funded students to pay a deposit or top-up payment so as to get use of the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement among the non-public accommodation companies and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease might be paid month to month towards the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or another sorts of payment for the lessor, or any other person in reference to this agreement, which include payment of rent, though awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default while in 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 student will not be liable for payment of any arrear rent into the accommodation company, up here right up until the day of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar check here will be responsible for payment of hire towards the lessor with the day of becoming 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 read more liable for payment read more 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 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 check here procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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