Accommodation companies 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 comes soon after NSFAS received stories about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of your obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement concerning the personal accommodation providers and NSFAS funded students," NSFAS stated in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease is going to be paid monthly into the accommodation supplier (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or every other forms of payment into the lessor, or some other person in reference to this arrangement, together with payment of hire, whilst awaiting payment from NSFAS. The more info lessor shall haven't any recourse versus check here the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect determination by NSFAS, the website student will not be accountable for payment of any arrear rent towards the accommodation service provider, up until eventually the date of being defunded."

NSFAS explained that wherever the NSFAS-funded click here student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student is going to be answerable for payment of rent on the lessor from the date of being 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, 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