Accommodation vendors urged to stop demanding deposit from NSFAS funded university students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.

This comes after NSFAS acquired stories about some accommodation companies 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 from the obligatory conditions, as provided by the Standardised Fixed-Term Lease Settlement among the private accommodation suppliers and NSFAS funded students," NSFAS stated in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent is going to be paid out every month for the accommodation service provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not have to have or allow the lessee to pay a deposit, top-up payments, or almost every other varieties of payment on the lessor, or every other person in reference to this agreement, together with payment of lease, though awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default while in the payment of rent by NSFAS," the website arrangement reads.

The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on check here account of an incorrect determination by NSFAS, the student will not be chargeable for payment of any arrear rent towards the accommodation company, up right until the day of being defunded."

NSFAS stated that exactly where the NSFAS-funded student website chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be accountable for payment of rent towards the lessor from your date 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, 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 click here 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 university allowances NSFAS for this purpose.
From: SAnews.gov.za

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