Accommodation companies urged to halt demanding deposit from NSFAS funded 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 just after NSFAS obtained reports about some accommodation vendors who demand NSFAS-funded students to pay a deposit or top-up payment so as to get use of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the non-public accommodation companies and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

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

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

The NSFAS conditions and terms for private accommodation suppliers’ website participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect selection by NSFAS, the here scholar will not be liable for payment of any arrear rent on the accommodation supplier, up until finally the day of being defunded."

NSFAS explained that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar is going to be answerable for payment of rent for the lessor with the day of 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 be for the student own account," the scheme said.

The scheme emphasised that any dispute arising between the parties regarding the interpretation more info 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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