Accommodation suppliers urged to halt demanding deposit from NSFAS funded 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 arrives just 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 use of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement among the private accommodation vendors and NSFAS funded students," NSFAS explained in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent will probably be paid out every month to your accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or another kinds of payment to the lessor, or almost every more info other person in connection with this agreement, including payment of lease, though awaiting payment from NSFAS. The 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 read more accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect selection by NSFAS, the scholar won't be accountable for payment of any arrear rent on get more info the accommodation company, up till the date of being defunded."

NSFAS described that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar will be liable for payment of rent towards the lessor in the date of becoming 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 click here 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 get more info 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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