Accommodation companies 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 right after NSFAS acquired stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment to be able to get entry to the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement among the non-public accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent is going to be paid every month into the accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal.
"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or every other forms of payment into the lessor, or almost every other person in connection with this agreement, including payment of rent, when awaiting payment from NSFAS. The lessor shall don't check here have any recourse towards the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect determination by NSFAS, the coed won't be chargeable for read more payment of any arrear rent on the accommodation supplier, up right until the date of being defunded."
NSFAS spelled out that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar is going to be liable for payment of lease towards the lessor from the day of being defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the click here 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 check here 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. website
From: SAnews.gov.za