Accommodation companies urged to end demanding deposit from NSFAS funded 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 after NSFAS received stories about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers on the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement concerning the non-public accommodation providers and NSFAS funded students," NSFAS stated in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent will probably be paid out month-to-month for the accommodation company (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not require or permit the lessee to pay for a deposit, top-up payments, or almost every other types of payment towards the lessor, or any other person in reference to this agreement, including payment of hire, whilst awaiting payment from NSFAS. The lessor read more shall click here haven't any recourse in opposition to the lessee for any default inside here the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account website of an incorrect decision by NSFAS, the coed won't be chargeable for payment of any arrear rent for the accommodation service provider, up right until the date of being defunded."
NSFAS stated that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student is going to be answerable for payment of rent for the lessor within 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 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 check here 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 determined by NSFAS for this purpose.
From: SAnews.gov.za