Accommodation providers urged to stop 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 after NSFAS obtained reports about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get usage of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement among the private accommodation suppliers and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent is going to be paid regular into the accommodation supplier (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or another varieties of payment on the lessor, or another person in connection with this agreement, together with payment of lease, whilst awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and nsfas status check terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect determination by NSFAS, the scholar won't be responsible for payment of any arrear rent on the accommodation provider, up right up until the date of being defunded."

NSFAS explained that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar will be responsible for payment of lease to the lessor within the day of becoming defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the website student must immediately vacate the leased property; click here 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 website rental to the new accommodation provider, and any such rental payments will be for the nsfas document submission deadline 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 NSFAS for this purpose.
From: SAnews.gov.za

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