Accommodation companies urged to stop demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.
This comes just after NSFAS been given reports about some accommodation vendors who need NSFAS-funded students to pay for a deposit or top-up payment in order to get use of the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement between the personal accommodation suppliers and NSFAS funded students," NSFAS said in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease will be paid regular monthly into the accommodation provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or any other forms of payment to the lessor, or any other person in reference to this arrangement, like payment of rent, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse against the lessee for any default within the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect selection by NSFAS, the student won't be accountable read more for payment of any arrear rent into the accommodation supplier, up till the day of being defunded."
NSFAS defined that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar are going to be accountable for payment of hire to the lessor through the click here day of staying defunded.
"Where the student is defunded by NSFAS due to a misrepresentation check here by the lessee/guardian at any stage, the student must immediately vacate the leased property; and will be website 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 more info 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