Accommodation companies urged to stop demanding deposit from NSFAS funded college 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 been given stories about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers in the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement concerning the private accommodation suppliers and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid out month to month to your accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay for a deposit, top-up payments, or another forms of payment towards the lessor, or some other person in reference to this agreement, together with payment of here lease, though awaiting payment from NSFAS. The lessor shall have no 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 providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect determination by NSFAS, the scholar will not be liable for payment of any arrear rent into the accommodation company, up until finally the date of being defunded."

NSFAS stated more info that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student will be liable for payment of hire for the lessor check here with the day of becoming defunded.

"Where the student is more info 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 nsfas login 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