Accommodation providers urged to halt demanding deposit from NSFAS funded college students



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

This comes immediately after NSFAS been given experiences about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get entry to the permitted private accommodation.

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

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

"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or almost every other forms of payment for the lessor, or some other person in connection with this agreement, including payment of rent, even nsfas student document submission deadline though awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student nsfas student allowances is defunded as a result of an incorrect selection by NSFAS, the scholar won't be answerable for payment of any arrear rent on the accommodation supplier, up right up until nsfas allowances the day of being defunded."

NSFAS stated that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be responsible for payment of rent to the lessor from the day of currently being defunded.

"Where the student is defunded click here 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 nsfas status check 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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