Accommodation suppliers urged to stop demanding deposit from NSFAS funded college students



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

This comes just after NSFAS been given experiences about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment as a way to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of your obligatory conditions, as provided by the Standardised Fixed-Term Lease Settlement involving the personal accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease will likely be paid out every month on the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private 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 any other sorts of payment towards the lessor, or another person in connection with this arrangement, such as get more info payment of hire, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse nsfas tvet against the lessee for any default while in the payment of rent by NSFAS," the 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 because of an incorrect selection by NSFAS, the scholar will not be click here responsible for payment of any arrear rent into the accommodation provider, up right until the date of being defunded."

NSFAS described that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar are going to be liable for payment of rent for the lessor with the day of remaining defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian nsfas allowances 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 get more info 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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