Accommodation vendors urged to stop 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 arrives just after NSFAS obtained experiences about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment in an effort to get access to the authorised private accommodation.

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

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid monthly towards the accommodation supplier (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or every other types of payment for the lessor, or some other person in connection with this agreement, which includes payment of lease, although awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for read more any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation companies’ participation here on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect decision by NSFAS, the scholar won't be chargeable for payment of any arrear rent to your accommodation company, up right until the day of being defunded."

NSFAS defined that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar is going to be accountable for payment of hire on the lessor in the day of getting 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 click here 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 check here said.

The scheme emphasised that any dispute arising between the parties regarding the interpretation or implementation of the agreement, must be dealt with in click here accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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