Accommodation providers urged to end demanding deposit from NSFAS funded 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 arrives right after NSFAS received reports about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies in the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement involving the non-public accommodation providers and NSFAS funded students," NSFAS said in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease might be paid out every month on the accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not require or permit the lessee to pay for a deposit, top-up payments, or every other sorts of payment towards the lessor, or almost every other person in connection with this more info agreement, which include payment of rent, although awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default within the payment of rent by NSFAS," read more the agreement reads.
The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due here to an incorrect nsfas application delay choice by NSFAS, the coed will not be responsible for payment of any arrear rent to your accommodation service provider, up till the date of being defunded."
NSFAS described that the place the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be answerable for payment of hire on the lessor through the date 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 for payment of all rent due to the accommodation provider.
"Where the student moves, accommodation check here 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 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