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



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

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

Friday, February 7, 2025
"NSFAS reminds accommodation providers in the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the personal accommodation companies and NSFAS funded students," NSFAS said in an announcement on Thursday.

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

"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or another forms of payment towards the lessor, or every other person in connection with this agreement, which includes payment of rent, though awaiting payment nsfas academic pathways from NSFAS. The lessor shall haven't any recourse towards the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for read more private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect selection by NSFAS, the student won't here be chargeable for payment of any arrear rent for the accommodation service provider, up right until the day of being defunded."

NSFAS defined that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar are going to be responsible for payment of hire towards the lessor within the date of getting 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 check here 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 check here be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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