Accommodation companies urged to end demanding deposit from NSFAS funded university 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 immediately after NSFAS gained stories about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment so as to get use of the permitted private accommodation.

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

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

"The lessor may not have to have or permit the lessee to pay a deposit, top-up payments, or any other kinds of payment into the lessor, or some other person more info in reference to this arrangement, which includes payment of lease, though awaiting payment from check here NSFAS. The lessor shall have no recourse in opposition to the lessee for any default during the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also check here states that: "Where the NSFAS-funded student is defunded due to an incorrect selection by NSFAS, the scholar won't be liable for payment of any arrear rent towards the accommodation service provider, up until finally the date of being defunded."

NSFAS defined that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student is nsfas status check going to be responsible for payment of rent to your lessor from your day of getting 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 scheme emphasised that any dispute arising website 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