Accommodation suppliers urged to stop 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 arrives immediately after NSFAS gained stories about some accommodation suppliers who require NSFAS-funded students to pay a deposit or top-up payment in order to get usage of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement in between the private accommodation suppliers and NSFAS funded students," NSFAS stated in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent will probably be paid out every month to your accommodation supplier (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or some other forms of payment into the lessor, or any other person in connection with this arrangement, like payment of hire, even though awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default during the payment of rent by NSFAS," the agreement reads.

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

NSFAS spelled out that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student will be responsible for payment of rent nsfas to the lessor here in the date of getting defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the more info 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 nsfas status check 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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