Accommodation vendors urged to halt demanding deposit from NSFAS funded college 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 soon after NSFAS gained stories about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement among the non-public accommodation companies and NSFAS funded students," NSFAS explained in an announcement on Thursday.

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

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or another forms of payment towards the lessor, or some other person in reference to this arrangement, which include payment of hire, when awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default while in the payment 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 because of an incorrect choice by NSFAS, the coed won't be liable for payment of any arrear rent on the accommodation service provider, up till the date of being defunded."

NSFAS discussed that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding staying defunded by NSFAS, the student will be chargeable for payment of rent towards the lessor in the day of remaining defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any read more stage, the student must immediately vacate the leased property; website 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 nsfas 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 more info parties regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by more info NSFAS for this purpose.
From: SAnews.gov.za

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