Accommodation companies urged to stop demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.
This arrives immediately after NSFAS gained stories about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment so that you can get use of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement concerning the private accommodation suppliers and NSFAS funded students," NSFAS said in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent will be paid monthly to your accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not have to have or allow the lessee to pay for a deposit, top-up payments, or any other kinds of payment to your lessor, or any other person in connection with this agreement, which includes payment of lease, although awaiting payment from NSFAS. The lessor shall have no recourse against 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 due to an incorrect selection by NSFAS, the student won't be chargeable for payment of any nsfas university allowances arrear rent on the accommodation provider, up until the day of being defunded."
NSFAS defined get more info that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student are going to be responsible for payment of hire on the lessor within the date of currently being 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 read more new accommodation provider, and any such rental payments will be nsfas university allowances for the student own account," the scheme nsfas eligibility criteria 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