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 reports about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment to be able to get entry to the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement among the private accommodation vendors and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease are going to be paid regular monthly on the accommodation company (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation providers’ participation on the student accommodation portal.
"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or some other varieties of payment for the lessor, or almost every other person in reference to this agreement, including payment of lease, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect choice by NSFAS, the coed will not be accountable for payment of any arrear rent check here towards the accommodation company, up till the date of being defunded."
NSFAS described that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding staying defunded by NSFAS, the student is going to be accountable for payment of hire towards the lessor with the day of getting 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 read more will be liable for payment of all rent due to here 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 website 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. get more info
From: SAnews.gov.za