Accommodation companies urged to halt demanding deposit from NSFAS funded university 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 arrives just after NSFAS obtained reports about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement among the private accommodation providers and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent will probably be paid out monthly to the accommodation service provider (lessor) by NSFAS, on behalf on 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 require or allow the lessee to pay a deposit, top-up payments, or another sorts of payment towards the lessor, or another person in connection with this arrangement, like payment of rent, when awaiting payment check here from NSFAS. The lessor shall have no recourse versus the lessee for any default inside 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 defunded because of an incorrect selection by NSFAS, the student will not website be answerable for payment of any arrear rent for the accommodation company, up until finally the day of being defunded."

NSFAS explained that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student will be responsible for payment of lease into the lessor in the date of getting 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 here 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 here 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 check here dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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