Accommodation vendors urged to end demanding deposit from NSFAS funded university students
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to require a deposit or top-up payment from NSFAS-funded students.
This arrives after NSFAS obtained reports about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment in an effort to get use of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers in the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement concerning the non-public accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent might be paid out regular monthly to your accommodation supplier (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or any other forms of payment into the lessor, or some other person in reference to this agreement, like payment of hire, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default while in the here payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect determination by NSFAS, the student won't be responsible for payment of any arrear rent into the accommodation service provider, up right up until the date of being defunded."
NSFAS defined that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be liable for here payment of rent to the lessor in the day of getting defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student here 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 nsfas tvet 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 get more info with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za