Accommodation providers 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 following NSFAS acquired reports about some accommodation vendors who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get access to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Settlement in between the private accommodation suppliers and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent is going to be paid month-to-month towards the accommodation provider (lessor) by NSFAS, on behalf of your 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 permit the lessee to pay for a deposit, top-up payments, or some other types of payment on the lessor, or any other person in reference to this arrangement, like payment of lease, when awaiting payment from NSFAS. The lessor shall don't have any recourse click here towards the lessee for any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect determination by NSFAS, the coed won't be accountable for payment of any arrear rent into the accommodation supplier, 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 by NSFAS, the student are going to be liable for payment of lease into the lessor through the date of staying defunded.

"Where the student is defunded by nsfas application delay NSFAS due to a misrepresentation by the lessee/guardian at nsfas login 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, website NSFAS may elect here 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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