Accommodation suppliers urged to stop demanding deposit from NSFAS funded college 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 immediately after NSFAS gained reports about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment in order to get entry to the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement concerning the private accommodation providers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent might be paid out monthly to the accommodation service provider (lessor) by NSFAS, on behalf from 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 require or allow the lessee to pay a deposit, top-up payments, or any other sorts of payment to your lessor, or another person in connection with this agreement, including payment of lease, even though awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default from the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where read more the NSFAS-funded student is defunded as a result of an incorrect selection by NSFAS, the student won't be responsible for payment of any arrear rent towards the accommodation company, up until finally the date of being defunded."

NSFAS described that where by the NSFAS-funded check here student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student is going to be chargeable for payment of hire read more into the lessor from the date of becoming 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 here 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 nsfas application delay 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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