Accommodation vendors urged to stop demanding deposit from NSFAS funded university 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 arrives right after NSFAS received reports about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies from the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement concerning the personal accommodation suppliers and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will likely be paid regular for the accommodation service provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or any other types of payment on the lessor, or almost every other person in reference to this arrangement, which include payment of hire, though awaiting payment from NSFAS. The lessor shall haven't any recourse versus 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 resulting from an incorrect selection by NSFAS, the student will not be liable click here for payment of any arrear rent into the accommodation company, up until eventually the day of being defunded."

NSFAS stated that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, website the student are going to be answerable for payment of lease on the 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 more info 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 nsfas status check rental to the new accommodation provider, here 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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