Accommodation providers urged to halt demanding deposit from NSFAS funded university students



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

This arrives soon after NSFAS gained stories about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment as a way to get usage of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers in the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement amongst the non-public accommodation companies and NSFAS funded students," NSFAS reported in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease is going to be paid out every month for the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or some other varieties of payment into the lessor, or another person in reference to this arrangement, including payment of rent, whilst awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default inside the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation suppliers’ 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 here will not be responsible for payment of any arrear rent nsfas application delay for the accommodation supplier, up right up until the date of being defunded."

NSFAS described that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be responsible for payment of rent into the lessor with the date of becoming defunded.

"Where the student is defunded by NSFAS due to a misrepresentation here 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, nsfas student allowances 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 read more 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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