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 right after NSFAS received stories about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment as a way to get entry to the accepted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies in the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement amongst the non-public accommodation vendors and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent will likely be paid month to month for the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or another types of payment into the lessor, or any other person in connection with this arrangement, like payment of rent, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse in opposition to the lessee for any default during the payment of rent by NSFAS," the arrangement reads.

The website NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect determination by NSFAS, the student nsfas document submission deadline will not be chargeable for payment of any arrear rent to the accommodation supplier, up right until the day of being defunded."

NSFAS stated that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student are going to be chargeable for payment of website rent for the lessor through the date of getting 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 nsfas allowances 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 nsfas university allowances 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