Accommodation suppliers urged to end demanding deposit from NSFAS funded university 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 acquired reports about some accommodation providers who require NSFAS-funded students to pay for a deposit or top-up payment in an effort to get use of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your obligatory conditions, as supplied 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 probably be paid out every month to your accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not have to have or permit the lessee to pay for a deposit, top-up payments, or every other sorts of payment for the lessor, or another person in connection with this arrangement, together with payment of rent, when awaiting payment from NSFAS. The lessor shall have no recourse nsfas allowances in opposition to the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect selection by NSFAS, the coed won't be website chargeable for payment of any arrear rent to the accommodation provider, up right up until the day of being defunded."

NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the more info student will be liable for payment of rent to the lessor from the day of staying defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian more info 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 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 read more 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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