Accommodation companies urged to end demanding deposit from NSFAS funded university students



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.

This arrives immediately after NSFAS obtained stories about some accommodation vendors 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 providers on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement involving the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

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

"The lessor may not need or allow the lessee to pay for a deposit, top-up payments, or almost every other kinds of payment towards the lessor, or any other person in connection with this arrangement, such as payment of lease, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect decision by NSFAS, the student won't be liable for payment of any here arrear rent towards the accommodation provider, up till the date of being defunded."

NSFAS described that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded more info by NSFAS, the student will be liable for payment of hire on the lessor with the date 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 nsfas university allowances 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 here the agreement, must be dealt with in accordance with here any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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