Accommodation vendors urged to stop 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 soon after NSFAS obtained stories about some accommodation vendors who require NSFAS-funded students to pay for a deposit or top-up payment so as to get entry to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement involving the personal accommodation vendors and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease is going to be paid monthly for the accommodation supplier (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or every other kinds of payment towards the lessor, or another person in reference to this agreement, including payment of hire, when awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ nsfas eligibility criteria participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect choice by NSFAS, the coed won't be accountable for payment of any arrear rent into the accommodation service provider, up until the date of being defunded."

NSFAS described that where by the NSFAS-funded get more info student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student is going to be liable for payment of rent for the lessor within the day of remaining defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at check here 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 rental to the new accommodation provider, and any such rental payments will be for the student own account," click here the scheme said.

The scheme emphasised that any dispute arising between the parties regarding the interpretation or implementation of the agreement, must be get more info dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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