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 following NSFAS acquired stories about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment so as to get use of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement concerning the non-public accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.

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

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or another sorts of payment for the lessor, or any other person in reference to this agreement, which include payment of lease, while awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any default during the payment 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 consequence of an incorrect choice by NSFAS, the scholar will not be accountable for nsfas tvet payment of any arrear rent on the accommodation company, up till the date of being defunded."

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

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any get more info 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 check here 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 between the parties regarding the interpretation or implementation of the agreement, must be click here dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za