Accommodation companies urged to stop demanding deposit from NSFAS funded university 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 obtained reports about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment to be able to get entry to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors in the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement between the private accommodation companies and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid out month to month on the accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay for a deposit, top-up payments, or some other types of payment on the lessor, or every other person in connection with this arrangement, such as payment of hire, when awaiting payment from NSFAS. The click here lessor shall don't have any recourse from the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation nsfas university allowances suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect decision by NSFAS, the coed won't be website answerable for payment of any arrear rent for the accommodation company, up right until the day of being here defunded."

NSFAS explained that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be accountable for payment of rent on the lessor within 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 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 nsfas tvet 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 procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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