Accommodation suppliers urged to stop demanding deposit from NSFAS funded college students



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

This comes immediately after NSFAS acquired stories about some accommodation vendors who require NSFAS-funded students to pay for a deposit or top-up payment in order to get use of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers in the obligatory conditions, as provided by the Standardised Fixed-Term Lease Settlement amongst the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease might be paid out regular monthly into the accommodation company (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or some other kinds of payment to your lessor, or another person in reference to this arrangement, which include payment of hire, though awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default during the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded click here on account of an incorrect click here choice by nsfas tvet NSFAS, the student won't be answerable for payment of any arrear rent into the accommodation company, up right up until the date of being defunded."

NSFAS defined that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar nsfas university allowances is going to be answerable for payment of lease towards the lessor with the date of staying defunded.

"Where the student is defunded nsfas document submission deadline 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 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 for this purpose.
From: SAnews.gov.za

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