Accommodation companies urged to stop demanding deposit from NSFAS funded college 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 arrives right after NSFAS received stories about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get access to the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement concerning the non-public accommodation vendors and NSFAS funded students," NSFAS reported in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent is going to be paid month to month on the 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 have to have or permit the lessee to pay for a deposit, top-up payments, or almost every other types of payment to the lessor, or another person in connection with this arrangement, like payment of rent, when awaiting payment from read more NSFAS. The lessor shall have no recourse versus the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on here account of an incorrect determination by NSFAS, the student won't be liable for payment of any arrear rent on the accommodation service provider, up till the date of being defunded."
NSFAS spelled out that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar is going to be liable for payment of hire to your here lessor with the date 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; and will be liable for payment of nsfas eligibility criteria 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 account," the scheme read more 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