Accommodation suppliers urged to halt demanding deposit from NSFAS funded college students



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

This arrives after NSFAS been given experiences about some accommodation providers who require NSFAS-funded students to pay a deposit or top-up payment to be able to get entry to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies with the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement amongst the non-public accommodation providers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent might be paid regular monthly towards the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not have to have or allow the lessee to pay for a deposit, top-up payments, or every other kinds of payment on the lessor, or another person in reference to this arrangement, including payment of rent, while awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any nsfas academic pathways default during the payment of rent by NSFAS," the agreement reads.

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

NSFAS described that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the student will be chargeable for payment of hire for the lessor with click here the date of getting 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 tvet 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 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 nsfas eligibility criteria this purpose.
From: SAnews.gov.za

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