Accommodation suppliers urged to halt demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This arrives right after NSFAS obtained stories about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment to be able to get usage of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement concerning the private accommodation suppliers and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease will be paid every month for the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or almost every other sorts of payment to the lessor, or every other person in reference to this arrangement, like payment of lease, even though awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any default within the payment read more of rent by NSFAS," the agreement 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 as a result of an incorrect decision by read more NSFAS, the scholar will not be liable for payment of any arrear rent on nsfas tvet the accommodation provider, up until the day of being defunded."

NSFAS explained that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar is going nsfas status check to be answerable for payment of rent for the lessor with the day of becoming 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 to pay any rental to the new nsfas eligibility criteria 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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