Accommodation suppliers urged to stop demanding deposit from NSFAS funded university students

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

This arrives immediately after NSFAS been given stories about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment in an effort to get access to the authorised private accommodation.

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

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

"The lessor may not need or permit the lessee to pay for a deposit, top-up payments, or every other kinds of payment towards the lessor, or almost every other person in reference to this arrangement, together with payment of lease, when awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an nsfas tvet incorrect determination by NSFAS, the student will check here not be accountable for payment of any arrear rent towards the accommodation company, up right up until the date of being defunded."

NSFAS described that where the NSFAS-funded student chooses to carry on nsfas student document submission deadline occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student are going to be responsible for payment of nsfas eligibility criteria hire to the lessor with the date of staying 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 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 check here NSFAS for this purpose.
From: SAnews.gov.za