Accommodation vendors urged to end demanding deposit from NSFAS funded university 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 after NSFAS been given experiences about some accommodation vendors who require NSFAS-funded students to pay a deposit or top-up payment in an effort to get usage of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors with the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement involving the private accommodation providers and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

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

"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or any other types of payment into the lessor, or almost every other person in connection with this agreement, which includes payment of rent, though awaiting payment from NSFAS. The lessor shall have no recourse versus read more the lessee here for any default during the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect choice by NSFAS, the scholar will not be chargeable for payment of any arrear nsfas student allowances rent towards the accommodation supplier, up until the date of being defunded."

NSFAS described that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar is going to be answerable for payment of hire for the lessor through the day 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 website 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 click here any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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