Accommodation companies 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 after NSFAS been given reports about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment so as to get entry to the approved private accommodation.

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

The Standardised Fixed-Term Lease Agreement states which the lease will be paid regular monthly towards the accommodation provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or another types of payment into the lessor, or almost every other person in connection with this arrangement, which includes payment of hire, though awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default within the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect choice by more info NSFAS, the scholar will not be answerable for payment of any arrear rent into the accommodation service provider, up right up until the day of being defunded."

NSFAS described that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar will be liable for payment of hire to your lessor through 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 nsfas allowances immediately vacate the leased property; and will be nsfas login 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 check here 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 nsfas tvet this purpose.
From: SAnews.gov.za

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