Accommodation vendors urged to end demanding deposit from NSFAS funded university 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 right after NSFAS obtained stories about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment so that you can get usage of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies with the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement among the private accommodation vendors and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will be paid out monthly to the accommodation company (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not require or permit the lessee to pay for a deposit, top-up payments, or some other forms of payment for the lessor, or some other person in connection with this arrangement, together with payment of rent, while awaiting payment from NSFAS. The lessor shall don't have more info any recourse versus the lessee for any default while in the payment of rent by NSFAS," the agreement 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 more info defunded on account of an incorrect determination by NSFAS, the scholar won't be accountable for payment of any arrear rent on the accommodation service provider, up until finally the day of being defunded."

NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased read more premises, notwithstanding becoming defunded by NSFAS, the student is going to be answerable for payment of hire 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 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 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 website procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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