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 immediately after NSFAS acquired experiences about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get access to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement between the personal accommodation providers and NSFAS funded students," NSFAS stated in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will probably be paid month to month to the accommodation supplier (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not have to have or allow the lessee to pay for a deposit, top-up payments, or any other forms of payment to the lessor, or any other person in connection with this arrangement, such as payment of hire, whilst 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 NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal nsfas status check also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect choice by NSFAS, the student will not be accountable for payment of any arrear rent for the accommodation company, up right until the day here of being defunded."

NSFAS spelled out that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar are going to be responsible for payment here of lease on the lessor within the day of currently 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 due to the accommodation provider.

"Where the student moves, accommodation providers without the prior approval of NSFAS, website 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 purpose.
From: SAnews.gov.za

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