Accommodation companies urged to stop demanding deposit from NSFAS funded college 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 obtained experiences about some accommodation vendors who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get entry to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement among the personal accommodation suppliers and NSFAS funded students," NSFAS stated in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid out every month on the accommodation service provider (lessor) by NSFAS, on behalf on 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 involve or permit the lessee to pay a deposit, top-up payments, or another kinds of payment on the lessor, or any other person in reference to this arrangement, which includes payment of hire, while awaiting payment from NSFAS. The lessor shall don't have any recourse from the lessee for any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation get more info portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect choice by NSFAS, the coed won't be answerable for payment of any arrear rent to the accommodation supplier, up right up until the day nsfas document submission deadline of being defunded."

NSFAS spelled out that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student will be accountable for payment of rent towards the lessor from your date of becoming 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, get more info 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 website agreement, must be dealt with in accordance with any dispute check here resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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