Accommodation providers 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 received experiences about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment so as to get use 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 Agreement concerning the personal accommodation providers and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent are going to be paid out regular monthly on the accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation providers’ participation on the student accommodation portal.
"The lessor may not have to have or permit the lessee to pay a deposit, top-up payments, or another varieties of payment into the lessor, or any other person in connection with this arrangement, which include payment of lease, though awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default in the payment of rent by NSFAS," the agreement 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 because of an incorrect selection by NSFAS, the scholar won't be liable for payment of any arrear rent for the accommodation company, up until the date of being defunded."
NSFAS read more described that the place the NSFAS-funded student chooses to click here carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar are going to be answerable for payment of hire to the lessor in the date 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 read more 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 nsfas tvet of here the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za