Accommodation vendors 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 arrives soon after NSFAS obtained reports about some accommodation vendors who need NSFAS-funded students to pay a deposit or top-up payment as a way to get entry to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies in the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement amongst the private accommodation providers and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid out regular monthly towards the accommodation service provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or every other sorts of payment towards the lessor, or almost every other person in connection with this agreement, together with payment of rent, when awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default during the payment of more info rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal website also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect selection by NSFAS, the scholar will not be accountable for payment of any arrear rent on the accommodation company, up till the date of being defunded."

NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding check here being defunded by NSFAS, the scholar are going to be answerable for payment of hire into the lessor within the date of currently being 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 get more info be for the student own account," the scheme said.

The scheme emphasised that any dispute arising nsfas university allowances 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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