Accommodation vendors urged to stop demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.
This arrives soon after NSFAS been given experiences about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment as a way to get access to the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the compulsory conditions, as provided by the Standardised Fixed-Term Lease Arrangement amongst the private accommodation companies and NSFAS funded students," NSFAS explained in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease will be paid every month to your accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not have to have or allow the lessee to pay a deposit, top-up payments, or any other types of payment on the lessor, or almost every other person in reference to this arrangement, like payment of hire, though awaiting payment from NSFAS. The click here lessor shall haven't any recourse versus the lessee for any default in the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation providers’ 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 will not be answerable for payment of any arrear rent on the accommodation service provider, up until the date of being defunded."
NSFAS explained that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar will be chargeable for payment of hire for the lessor through the day 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; nsfas university allowances and will be liable for payment of all rent due to the accommodation provider.
"Where the here 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 account," the nsfas university allowances scheme said.
The scheme emphasised that any dispute arising between the parties regarding the interpretation or implementation nsfas application delay of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za