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



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to require a deposit or top-up payment from NSFAS-funded students.

This comes following NSFAS received stories about some accommodation vendors who demand NSFAS-funded students to pay for a deposit or top-up payment in an effort to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement amongst the personal accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.

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

"The lessor may not need or permit the lessee to pay for a deposit, top-up payments, or almost every other sorts of payment on the lessor, or some other person in reference to this arrangement, including payment of lease, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default within the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation nsfas document submission deadline portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the coed won't be responsible for payment of any arrear rent to the accommodation supplier, up till the day of being defunded."

NSFAS explained that the place the NSFAS-funded student chooses to carry on here occupying the nsfas leased premises, notwithstanding remaining defunded by NSFAS, the scholar are going to be responsible for payment of rent for the lessor with the day of being defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by click here 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, and any such rental payments will be for the student own account," the scheme said.

The scheme emphasised nsfas allowances 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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