Accommodation vendors urged to halt demanding deposit from NSFAS funded 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 comes after NSFAS been given reports about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment to be able to get access to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors in the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement in between the private accommodation suppliers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease are going to be paid month to month to the accommodation service provider (lessor) by NSFAS, on behalf in 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 need or allow the lessee to pay for a deposit, top-up payments, or any other kinds of payment to your lessor, or another person in connection with this agreement, together with payment of hire, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse in opposition to the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect determination by NSFAS, the coed won't be answerable for payment of any arrear rent to your accommodation provider, up until get more info the day of being defunded."

NSFAS discussed that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar are going to be responsible for payment of rent for the lessor from 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 read more 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 check here the student own account," the scheme said.

The scheme emphasised that any dispute arising between the parties here regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by here NSFAS for this purpose.
From: SAnews.gov.za

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