Accommodation providers urged to halt 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 comes soon after NSFAS received reports about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment in an effort to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement among the personal accommodation providers and NSFAS funded students," NSFAS stated in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent will be paid out every month to your accommodation supplier (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not call for or permit the lessee to pay for a deposit, top-up payments, or almost every other types of payment to the lessor, or almost every other person in connection with this arrangement, like payment of rent, when awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default while in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for here private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect determination by NSFAS, the student will not be responsible for payment of any arrear rent to the accommodation company, up until finally the read more day of being defunded."

NSFAS defined that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar will be responsible for payment of hire to the lessor from your day of being 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 read more for payment of all rent due to the accommodation provider.

"Where the student moves, accommodation get more info 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 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 more info determined by NSFAS for this purpose.
From: SAnews.gov.za

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