Accommodation vendors urged to halt demanding deposit from NSFAS funded college students

The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.

This arrives after NSFAS gained experiences about some accommodation vendors who demand NSFAS-funded students to pay for a deposit or top-up payment so as to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors with the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement involving the personal accommodation suppliers and NSFAS funded students," NSFAS explained in an announcement on Thursday.

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

"The lessor may not have to have or allow the lessee to pay a deposit, top-up payments, or some other forms of payment for the lessor, or some other person in connection with this agreement, such as payment of lease, even though awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any click here default while in the payment of rent by NSFAS," the get more info arrangement 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 resulting from an incorrect decision by NSFAS, the coed will not be liable for payment of any arrear rent on the accommodation company, up till the date of being defunded."

NSFAS discussed that where by the NSFAS-funded student chooses to continue occupying the leased read more premises, notwithstanding becoming defunded by NSFAS, the student will be liable for payment of hire to the lessor from 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 get more info provider.

"Where the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the website 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 determined by NSFAS for this purpose.
From: SAnews.gov.za