Accommodation companies urged to end 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 right after NSFAS been given stories about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment so as to get entry to the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement involving the non-public accommodation providers and NSFAS funded students," NSFAS explained in an announcement on Thursday.

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

"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or every other varieties of payment on the lessor, or almost every other person in connection with this arrangement, together with payment of hire, while awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any default inside the payment nsfas student allowances of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, read more the coed won't be responsible for payment of any arrear rent to your accommodation supplier, up until eventually the date of being defunded."

NSFAS spelled out that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student are going to be liable for payment of hire towards the lessor from the day of nsfas academic pathways remaining 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 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 read more dispute arising read more 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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