Accommodation suppliers urged to stop 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 immediately after NSFAS gained stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement in between the private accommodation vendors and NSFAS funded students," NSFAS explained in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent are going to be paid every month to your accommodation supplier (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.
"The lessor may not call for or permit the lessee to pay for a deposit, top-up payments, or some other types of payment into the lessor, or almost every other person in connection with this arrangement, which includes payment of rent, when awaiting payment from NSFAS. The lessor shall have no recourse versus read more the lessee for any default while in the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the scholar won't be chargeable for payment of any arrear rent for the accommodation provider, up till get more info the day of being defunded."
NSFAS explained that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar will be chargeable for payment of rent to your lessor from your day of becoming defunded.
"Where the student is defunded click here by NSFAS due to a misrepresentation by more info 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 website 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