Accommodation suppliers 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 comes following NSFAS gained stories about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment so as to get use of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement amongst the private accommodation vendors and NSFAS funded students," NSFAS reported in an announcement on Thursday.

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

"The lessor may not have to have or permit the lessee to pay for a deposit, top-up payments, or some other forms of payment into the lessor, or some other person in connection with this agreement, including payment of lease, whilst get more info awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default nsfas eligibility criteria from the payment of rent by NSFAS," the agreement reads.

The NSFAS terms get more info and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect selection by NSFAS, the scholar will not read more be liable for payment of any arrear rent on the accommodation service provider, up until eventually the day of being defunded."

NSFAS defined that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be answerable for payment of hire to your lessor from the date of becoming 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 here 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 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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