Accommodation suppliers urged to halt demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.

This arrives after NSFAS been given stories about some accommodation vendors who require NSFAS-funded students to pay for a deposit or top-up payment in an effort to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers with the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement concerning the private accommodation vendors and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid out every month to your accommodation service provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay for a deposit, top-up payments, or almost every other forms of payment to the lessor, or every other person in connection with this agreement, such as payment of rent, when awaiting payment from NSFAS. The lessor shall don't have any check here recourse from the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also nsfas states that: "Where the NSFAS-funded student is defunded because of an incorrect decision by NSFAS, the scholar won't be chargeable for payment of any arrear rent on the accommodation supplier, up until the day of being defunded."

NSFAS explained that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student are going to be responsible for payment of lease for the lessor read more from the day of being 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 more info 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 nsfas university allowances 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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