Accommodation providers urged to end demanding deposit from NSFAS funded university 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 comes after NSFAS obtained stories about some accommodation vendors who need NSFAS-funded students to pay for a deposit or top-up payment to be able to get usage of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers with the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement involving the personal accommodation suppliers and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent is going to be paid every month into the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or another types of payment to your lessor, or every other person in connection with this arrangement, together with payment of rent, while awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default in the payment of rent by get more info NSFAS," the arrangement reads.

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

NSFAS discussed that exactly where the NSFAS-funded student chooses to carry on click here occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student is going to be answerable for payment of lease for the lessor within the date of getting here defunded.

"Where the student here is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, more info 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 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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