Accommodation companies urged to halt demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.

This arrives after NSFAS acquired stories about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of your obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement in between the private accommodation vendors and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease are going to be paid out regular monthly for the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or every other forms of payment to your lessor, or any other person in reference to this agreement, such as payment of hire, when awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect selection nsfas by NSFAS, the scholar will not be answerable for payment of any arrear rent for the accommodation service provider, up right up until the day of being defunded."

NSFAS described nsfas document submission deadline that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar will be chargeable for payment of hire towards the lessor through the day of being defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by read more 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 read more to the new accommodation provider, and any such rental payments will be for the student own nsfas student allowances 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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