Accommodation companies urged to stop demanding deposit from NSFAS funded college students



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

This comes following NSFAS acquired reports about some accommodation providers who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get usage of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the non-public accommodation suppliers and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent will likely be paid out month to month for the accommodation provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using 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 some other types of payment into the lessor, or another person in connection with this arrangement, like payment of rent, even though awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default during the payment of rent by NSFAS," the agreement reads.

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

NSFAS spelled out nsfas student document submission deadline that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded click here by NSFAS, the student will be responsible for payment of rent into the lessor with the day of remaining 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, check here 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 arising between the parties regarding nsfas status check 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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