Accommodation vendors urged to halt demanding deposit from NSFAS funded college 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 immediately after NSFAS received experiences about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get usage of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies on the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement involving the non-public accommodation companies and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will be paid out regular towards the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or another varieties of payment to the lessor, or every other person in connection with this agreement, together with payment of hire, although awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default inside the payment of rent by NSFAS," the agreement reads.

The get more info NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect determination by NSFAS, the student will not be answerable for click here payment of any arrear rent towards the accommodation company, up until finally the date of being defunded."

NSFAS stated that exactly where the click here NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student read more is going to be chargeable for payment of rent to the lessor from your date of currently 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 nsfas university allowances 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 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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