Accommodation providers urged to stop demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.
This comes following NSFAS acquired stories about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment in an effort to get access to the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers with the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement involving the private accommodation companies and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease will likely be paid regular for the accommodation company (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not call for or permit the lessee to pay for a deposit, top-up payments, or every other sorts of payment for the lessor, or another person in connection with this agreement, such as payment of rent, while awaiting payment from NSFAS. The lessor shall haven't any recourse against the lessee for any default during the payment of rent by NSFAS," the arrangement 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 because of an incorrect decision by NSFAS, the student will not be accountable for payment of any arrear rent for the accommodation supplier, more info up until finally the date of being defunded."
NSFAS discussed that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar is going to be liable for click here payment of hire for the lessor from the day of being 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 check here 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 more info 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 nsfas university allowances resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za