Accommodation vendors urged to end demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.

This comes following NSFAS acquired stories about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get access to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement between the non-public accommodation companies and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease might be paid month-to-month towards the accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or another kinds of payment to the lessor, or some other person in reference to this agreement, like payment of hire, although awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default in the payment of rent read more 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 due to an incorrect choice by NSFAS, the coed won't be answerable for payment of any arrear rent for the accommodation supplier, up right until more info the day of being defunded."

NSFAS discussed that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar get more info are going to be liable for payment of rent for the lessor with the day of being nsfas allowances 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 more info 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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