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



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This arrives after NSFAS obtained experiences about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get usage of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement in between the non-public accommodation providers and NSFAS funded students," NSFAS explained in an announcement on Thursday.

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

"The lessor may not have to have or allow the lessee to pay a deposit, top-up payments, or some other varieties of payment for the lessor, or another person in connection with this arrangement, like payment of hire, when awaiting payment from NSFAS. The read more lessor shall have no recourse in opposition to the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect decision by NSFAS, the student will not be liable for payment of any arrear rent towards the accommodation supplier, up right up until the date of being defunded."

NSFAS stated that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding here remaining defunded by NSFAS, the student are going to be chargeable for payment of lease towards the lessor with the day of currently being defunded.

"Where the student is defunded by NSFAS nsfas login 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 more info the prior approval of NSFAS, NSFAS more info 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 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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