Accommodation suppliers urged to halt demanding deposit from NSFAS funded students

The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.

This comes just after NSFAS gained reports about some accommodation vendors who require NSFAS-funded students to pay a deposit or top-up payment so as to get usage of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of your obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement among the private accommodation suppliers and NSFAS funded students," NSFAS said in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent might be paid out month to month into the accommodation provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.

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

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student click here accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect choice by NSFAS, the student will not read more be accountable for payment of any arrear rent on the accommodation company, up until eventually the date of being defunded."

NSFAS discussed that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be responsible for payment of hire towards the lessor within the date of staying 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 here property; and will be liable for payment of all rent due to the accommodation more info 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 get more info for this purpose.
From: SAnews.gov.za