Accommodation companies urged to stop 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 comes soon after NSFAS been given reports about some accommodation vendors who demand NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement in between the private accommodation providers and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease might be paid out month-to-month to your accommodation company (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not need or permit the lessee to pay a deposit, top-up payments, or every other forms of payment to the lessor, or almost every other person in reference to this arrangement, such as payment of rent, while awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default while in 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 as a consequence of an incorrect selection by NSFAS, the scholar won't be accountable for payment of any arrear rent towards the accommodation company, up until finally the date of being defunded."

NSFAS spelled out that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding staying defunded by NSFAS, the student are going to be answerable for nsfas allowances payment of rent on the lessor in the date of staying 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, click 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 get more info parties regarding the interpretation or implementation of the agreement, must be get more info dealt with in accordance with any dispute click here resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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