Accommodation providers urged to stop demanding deposit from NSFAS funded college 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 arrives immediately after NSFAS obtained stories about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment in an effort to get usage of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement in between 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 is going to be paid out month-to-month to the accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or almost every other kinds of payment to the lessor, or almost every click here other person in connection with this arrangement, such as payment of lease, while awaiting payment from NSFAS. The lessor shall have no recourse nsfas in opposition to the lessee for any default in the payment of rent by NSFAS," the agreement 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 due to an incorrect choice by NSFAS, the student will not be responsible for payment of any arrear rent to your accommodation supplier, up right until the day of being defunded."

NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be accountable for payment of rent towards the lessor from your date of being defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at nsfas document submission deadline 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 to pay any rental to read more 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 click 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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