Accommodation companies urged to end demanding deposit from NSFAS funded college 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 just after NSFAS acquired stories about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment so as to get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of your obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the non-public accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent will be paid out regular monthly for the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not require or permit the lessee to pay for a deposit, top-up payments, or some other varieties of payment to your lessor, or any other person in connection with this arrangement, which includes payment of lease, though awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the student will not be liable for payment of any arrear rent towards the accommodation provider, up until finally get more info the date of being defunded."

NSFAS defined that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding staying defunded by NSFAS, the student are going to be chargeable for payment of lease to the lessor within the date of being 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, nsfas student allowances and click here 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 more info of the agreement, nsfas allowances must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

Leave a Reply

Your email address will not be published. Required fields are marked *