Accommodation companies urged to end demanding deposit from NSFAS funded university students

The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.

This arrives right after NSFAS been given reports about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment so as to get access to the accepted private accommodation.

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

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

"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or another sorts of payment towards the lessor, or another person in connection read more with this arrangement, which includes payment of hire, although awaiting payment from NSFAS. The lessor shall haven't more info any recourse towards the lessee for any default during the payment of rent by NSFAS," the agreement 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 on account of nsfas login an incorrect determination by NSFAS, the scholar won't be accountable for payment of any arrear rent on the accommodation company, up till the date of being defunded."

NSFAS discussed that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student will be responsible for payment of hire for the lessor from the day nsfas application delay of remaining 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, 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 click here 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