Accommodation companies urged to end demanding deposit from NSFAS funded students



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

This arrives after NSFAS been given experiences about some accommodation vendors who require NSFAS-funded students to pay a deposit or top-up payment to be able to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of your compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement between the non-public accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.

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

"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or another forms of payment on the lessor, or some other person in connection with this agreement, like payment of rent, although awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default from the payment of rent by NSFAS," the website agreement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: "Where the read more NSFAS-funded student is defunded resulting from an incorrect determination by NSFAS, the coed will not be liable for payment of any arrear rent to the accommodation supplier, up until the day of being defunded."

NSFAS defined that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar click here will be chargeable for payment of lease for the lessor through the date 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 read more 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 more info 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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