Accommodation companies urged to stop demanding deposit from NSFAS funded 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 right after NSFAS been given experiences 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 accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement in between the personal accommodation providers and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease are going to be paid out month-to-month on the accommodation supplier (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or some other forms of payment to the lessor, or almost every other person in connection with this agreement, such as payment of rent, when awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for nsfas tvethere private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect determination by NSFAS, the student will not be responsible for payment of any arrear rent into the accommodation provider, up right up until the more info day of being defunded."

NSFAS discussed that where by the NSFAS-funded student chooses to carry on occupying the leased get more info premises, notwithstanding becoming defunded by NSFAS, the student are going to be answerable for payment of hire into the lessor in the day 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 here 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 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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