Accommodation vendors urged to end demanding deposit from NSFAS funded 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 soon after NSFAS been given reports about some accommodation companies who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get use of the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement involving the non-public accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent are going to be paid month-to-month to the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not need or allow the lessee to pay for a deposit, top-up payments, or almost every other kinds of payment on the lessor, or almost every other person in connection with this agreement, together with payment of hire, even though awaiting payment from NSFAS. The lessor here shall have no recourse towards the lessee for any default inside the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting nsfas tvet from an incorrect decision by NSFAS, the scholar won't be answerable for payment of any arrear rent towards the accommodation supplier, up till the day of being defunded."

NSFAS spelled out that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar will be chargeable for payment of lease towards the lessor in the day of getting defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the here 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 nsfas login 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 nsfas tvet 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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