Accommodation providers urged to halt demanding deposit from NSFAS funded college 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 comes soon after NSFAS received experiences about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment in order to get usage of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement in between the non-public accommodation providers and NSFAS funded students," NSFAS explained in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will likely be paid out regular monthly on the accommodation company (lessor) by NSFAS, on behalf of your 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 permit the lessee to pay a deposit, top-up payments, or almost every other forms of payment towards the lessor, or some other person in connection with this agreement, such as payment of more info rent, although awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default from the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a nsfas application delay consequence of an incorrect selection by NSFAS, the student won't be responsible for payment of any arrear rent to your accommodation company, nsfas status check up right up until the date of being defunded."

NSFAS stated that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student are going to be liable for payment of rent to the lessor through the day read more of getting 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 website 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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