Accommodation suppliers urged to stop 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 soon after NSFAS obtained reports about some accommodation vendors who demand NSFAS-funded students to pay a deposit or top-up payment in an effort to get usage of the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement among the personal accommodation suppliers and NSFAS funded students," NSFAS explained in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent will be paid every month into the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using 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 for a deposit, top-up payments, or every other sorts of payment to the lessor, or almost every other person in reference to this agreement, such as payment of rent, whilst awaiting payment from nsfas login NSFAS. The lessor shall have no recourse from the lessee for any default during the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where nsfas status check the NSFAS-funded student is defunded as a result of an incorrect selection by NSFAS, the coed will not be responsible for payment of any arrear rent to your accommodation service provider, up until finally the day of being defunded."
NSFAS spelled out that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student is going to be responsible for payment of rent towards the lessor in the date nsfas eligibility criteria of getting defunded.
"Where the student is defunded by NSFAS nsfas student allowances 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 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 website determined by NSFAS for this purpose.
From: SAnews.gov.za