Accommodation companies urged to stop 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 just after NSFAS received experiences about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get entry to the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement concerning the personal accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease is going to be paid monthly to your accommodation supplier (lessor) by NSFAS, on behalf of 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 involve or permit the lessee to pay for a deposit, top-up payments, or some other sorts of payment to your lessor, or some other person in connection with this agreement, more info which includes payment of rent, while awaiting payment from NSFAS. The lessor shall haven't any recourse here in opposition to the lessee for any default within 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 states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the scholar won't be chargeable for payment of any arrear rent for the accommodation service provider, up right until the date of being defunded."

NSFAS discussed that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded nsfas academic pathways by NSFAS, the student will be liable for payment of lease to the lessor through the day of staying defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student must immediately get more info 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 nsfas academic pathways 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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