Accommodation providers urged to end 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 stories about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment to be able to get use of the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers in the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement concerning the non-public accommodation providers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will probably be paid monthly on the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation providers’ 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 another forms of payment on the lessor, or another person in connection with check here this arrangement, which includes payment of check here lease, even though awaiting payment from get more info NSFAS. The lessor shall have no recourse against the lessee for any default inside 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 as a consequence of an incorrect decision by NSFAS, the student won't be responsible for payment of get more info any arrear rent towards the accommodation provider, up right until the date of being defunded."

NSFAS described that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student are going to be accountable for payment of rent into the lessor with the date 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 click here 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 this purpose.
From: SAnews.gov.za

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