Accommodation suppliers urged to stop demanding deposit from NSFAS funded college 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 comes just after NSFAS acquired reports about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get usage of the authorised private accommodation.

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

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

"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or another kinds of payment towards the lessor, or another person in connection with this arrangement, such as payment of rent, while awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation nsfas eligibility criteria suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect determination by NSFAS, the scholar won't be answerable for payment of website any arrear rent towards the accommodation provider, up right up until the date of being defunded."

NSFAS discussed that the place website the NSFAS-funded student chooses to continue occupying the leased premises, website notwithstanding becoming defunded by NSFAS, the scholar is going to be chargeable for payment of lease on the lessor through the date of remaining 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 rent due to click here 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