Accommodation providers urged to halt demanding deposit from NSFAS funded college 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 soon after NSFAS received stories about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment as a way to get use of the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement involving the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent will likely be paid out every month into the accommodation service provider (lessor) by NSFAS, on behalf of 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 need or permit the lessee to pay for a deposit, top-up payments, or almost every other types of payment towards the lessor, or another person in reference to this agreement, which includes payment of lease, while awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any default within the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation check here companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded nsfas academic pathways student is defunded as a result of an incorrect determination by NSFAS, the coed won't be responsible for payment of any arrear rent towards the accommodation service provider, up until eventually the date of being defunded."
NSFAS described that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student are going to be accountable for payment of hire for the lessor in the date of staying 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 more info 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 nsfas academic pathways 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 here determined by NSFAS for this purpose.
From: SAnews.gov.za