Accommodation companies urged to stop demanding deposit from NSFAS funded 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 soon after NSFAS received experiences about some accommodation vendors who demand NSFAS-funded students to pay for a deposit or top-up payment so as to get usage of the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement amongst the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

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

"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or another sorts of payment for the lessor, or every other person in reference to this agreement, including payment of hire, although awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default inside the payment of rent by NSFAS," the arrangement website reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect decision by NSFAS, the coed won't be accountable for payment of any arrear rent into the accommodation provider, up until eventually the more info date of being defunded."

NSFAS discussed that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar are going to be accountable for payment of lease to your lessor get more info within the date of becoming defunded.

"Where read more 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 nsfas university allowances 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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