Accommodation providers urged to halt demanding deposit from NSFAS funded 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 arrives immediately after NSFAS been given stories about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment so as to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement between the private accommodation vendors and NSFAS funded students," NSFAS said in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will be paid every month for 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 suppliers’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or almost every other forms of payment to your lessor, or any other person in connection with this agreement, which includes payment of hire, while awaiting payment from NSFAS. The lessor shall don't have any nsfas university allowances recourse from the lessee for any default in 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 as a consequence of an incorrect decision by NSFAS, the student won't be answerable for payment of any arrear rent to your accommodation provider, up right until the date of being defunded."

NSFAS discussed that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be chargeable for payment of lease nsfas login for the lessor from your day of staying 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 nsfas allowances 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 between the parties regarding the interpretation or implementation here of the agreement, must be dealt with in accordance with any dispute resolution procedure website determined by NSFAS for this purpose.
From: SAnews.gov.za