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 obtained reports about some accommodation vendors who need NSFAS-funded students to pay a deposit or top-up payment to be able to get usage of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers with the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement amongst the non-public accommodation companies and NSFAS funded students," NSFAS reported in an announcement on Thursday.

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

"The lessor may not demand or permit the lessee to pay for a deposit, top-up payments, or almost every other types of payment to your lessor, or another person in connection with this agreement, like payment of hire, though awaiting payment from NSFAS. The lessor shall haven't any recourse against the lessee for any default inside the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation here companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect selection by NSFAS, the coed will not be accountable for payment of any arrear rent towards the accommodation provider, up right until the day of being defunded."

NSFAS discussed that the place the NSFAS-funded check here student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be liable for payment of lease on the lessor from your date of remaining 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 to pay any here 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 read more 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: check here SAnews.gov.za

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