Accommodation companies urged to end demanding deposit from NSFAS funded university students



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

This comes just after NSFAS acquired stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get entry to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers in the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement between the personal accommodation companies and NSFAS funded students," NSFAS said in a press release on Thursday.

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

"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or any other forms of payment into the lessor, or some other person in reference to this arrangement, such as payment of hire, although awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default while in the payment of rent website 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 as a result of an incorrect choice by NSFAS, the coed won't be answerable for payment of any arrear rent towards the accommodation supplier, up right until the day of being defunded."

NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding more info getting defunded website by NSFAS, the student will be responsible for payment of rent towards the lessor from your date of staying defunded.

"Where the student is nsfas 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, accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and nsfas application delay 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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