Accommodation vendors 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 arrives following NSFAS been given stories about some accommodation providers who require NSFAS-funded students to pay for a deposit or top-up payment so as to get usage of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement concerning the personal accommodation providers and NSFAS funded students," NSFAS stated in a press release on Thursday.

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

"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or every other varieties of payment into the lessor, or every other person in reference to this agreement, here together with payment of lease, though awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default inside the nsfas tvet payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student here accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the coed will not be chargeable for payment of any arrear rent into the accommodation supplier, up until eventually the date of being defunded."

NSFAS explained that the place the NSFAS-funded nsfas application delay student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar is going to be chargeable for payment of lease into the lessor within 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 here 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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