Accommodation suppliers urged to halt demanding deposit from NSFAS funded college students
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 following NSFAS obtained stories about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get usage of the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement in between the personal accommodation suppliers and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent are going to be paid every month for the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not need or permit the lessee to pay a deposit, top-up payments, or some other kinds of payment on the lessor, or some other person in reference to this arrangement, nsfas document submission deadline including payment of rent, although awaiting payment from NSFAS. The lessor shall don't have any recourse in opposition to the lessee for any default during the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation suppliers’ participation on read more the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect choice by NSFAS, the student won't be liable for payment of any arrear rent nsfas application delay to the accommodation provider, up till the date of being defunded."
NSFAS stated that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be responsible for payment of hire on the lessor in the get more info day of becoming 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 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 read more 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