Accommodation companies urged to halt demanding deposit from NSFAS funded university students



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

This comes immediately after NSFAS obtained stories about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment in order to get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies 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 will probably be paid out regular to your accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or any other varieties of payment to your lessor, or some other person in nsfas application delay reference to this agreement, like payment of more info rent, even though awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect determination by NSFAS, the student will not be answerable for payment of any arrear rent for the accommodation company, up until finally the day of being defunded."

NSFAS stated that in which the NSFAS-funded nsfas allowances student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be chargeable for payment of hire to the lessor in the date 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 nsfas tvet 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 check here 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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