Accommodation companies urged to end demanding deposit from NSFAS funded students



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

This comes after NSFAS received reports about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers with the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the non-public accommodation vendors and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease are going to be paid monthly on the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not require or permit the lessee to pay a deposit, top-up payments, or another forms of payment for the lessor, or another person in reference to this agreement, like payment of lease, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default in the payment of rent by NSFAS," the arrangement 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 more info defunded resulting from an incorrect selection by NSFAS, the student will not be liable for payment of any arrear rent website to your accommodation supplier, up until the date of being defunded."

NSFAS stated that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be accountable for payment of lease to the lessor through the day of more info 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 nsfas tvet 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 here 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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