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 right after NSFAS obtained experiences about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment in order to get access to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Settlement among the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

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

"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or almost every other varieties of payment on the lessor, or another person in connection with this agreement, such as payment of hire, whilst awaiting payment from read more NSFAS. The lessor shall don't have any recourse towards the lessee for any default read more inside the payment of rent by NSFAS," the more info arrangement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect choice by NSFAS, the scholar will not be responsible for payment of any arrear rent to the accommodation company, up till the day of being defunded."

NSFAS discussed that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be accountable for payment of rent towards the lessor with the day of getting defunded.

"Where the student is nsfas university allowances 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 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 nsfas application delay purpose.
From: SAnews.gov.za

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