Accommodation companies urged to stop demanding deposit from NSFAS funded college 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 arrives just after NSFAS obtained stories about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment so that you can get entry to the authorized private accommodation.

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

The Standardised Fixed-Term Lease Agreement states the lease will likely be paid regular monthly for the accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or some other varieties of payment for the lessor, or almost every other person in reference to this agreement, like payment of lease, even though awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect selection by NSFAS, the scholar will not be liable for payment of any arrear rent on the accommodation service provider, up until the day of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar are going to be chargeable for payment of lease to the lessor from the day of currently being defunded.

"Where the student is get more info defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student must immediately vacate the leased property; and will nsfas university allowances 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 nsfas document submission deadline 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 or implementation of the agreement, must be dealt with check here in accordance with any dispute resolution procedure determined by NSFAS for this here purpose.
From: SAnews.gov.za

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