Accommodation companies urged to end demanding deposit from NSFAS funded university 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 arrives just after NSFAS gained stories about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment in an effort to get entry to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement concerning the personal accommodation providers and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will likely be paid out month-to-month for the accommodation supplier (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or another types of payment to your lessor, or any other person in reference to this agreement, which include payment of hire, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: check here "Where the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the coed won't be accountable for payment of any arrear rent on the accommodation service provider, get more info up until finally the date of being defunded."

NSFAS spelled out that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar is going to be answerable for payment of hire into the lessor within the date 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 student read more moves, accommodation providers without the prior approval of NSFAS, NSFAS nsfas student allowances 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 that any nsfas 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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