Accommodation companies urged to end demanding deposit from NSFAS funded students
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to require a deposit or top-up payment from NSFAS-funded students.
This comes just after NSFAS received stories about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors of your obligatory conditions, as provided by the Standardised Fixed-Term Lease Settlement concerning the personal accommodation providers and NSFAS funded students," NSFAS reported in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease might be paid month-to-month to the accommodation company (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not call for or allow the lessee to pay for a deposit, top-up payments, or another varieties of payment to your lessor, or some other person in reference to this agreement, including payment of rent, while awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default within the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation vendors’ participation on the student check here accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect choice by NSFAS, the scholar will not be chargeable for payment of any arrear here rent to the accommodation supplier, up until eventually the date of being defunded."
NSFAS explained that the place the NSFAS-funded student chooses to check here carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student is going to be chargeable for payment of lease towards the lessor from your day of remaining 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 providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and any such rental nsfas eligibility criteria 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 check here NSFAS for this purpose.
From: SAnews.gov.za