Accommodation providers urged to halt demanding deposit from NSFAS funded university 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 after NSFAS received reports about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment in an effort to get usage of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of your compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement concerning the private accommodation vendors and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will be paid month-to-month to your accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or every other kinds of payment to your lessor, or any other person in connection with this agreement, which include payment of hire, while awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default while more info in the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student here accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect choice nsfas status check by NSFAS, the student will not be answerable for payment of any arrear rent for the accommodation supplier, up right up until the date of being defunded."

NSFAS spelled out that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded nsfas tvet by NSFAS, the student is going to be responsible for payment of rent towards the lessor from your 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 immediately vacate the leased property; and will be liable for payment of all more info 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 any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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