Accommodation companies urged to stop 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 following NSFAS been given experiences about some accommodation providers who require NSFAS-funded students to pay a deposit or top-up payment as a way to get entry to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement in between the private accommodation vendors and NSFAS funded students," NSFAS reported in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid out every month to your accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms 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 another sorts of payment towards the lessor, or another person in reference to this agreement, which include payment of rent, though awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect selection by NSFAS, the scholar won't be accountable for payment of any arrear rent on the accommodation company, up right up until the day of being defunded."

NSFAS read more stated that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar are going to be chargeable for payment of lease for the lessor through the date of becoming defunded.

"Where the student is defunded by NSFAS due nsfas to a misrepresentation by the lessee/guardian at any stage, the student must immediately vacate the leased property; and will be website liable for payment of all rent due to the accommodation provider.

"Where the student moves, accommodation providers without the nsfas prior approval of NSFAS, NSFAS may elect not to pay any rental to the new more info 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 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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