Accommodation vendors urged to end 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 vendors who require NSFAS-funded students to pay for a deposit or top-up payment so as to get usage of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement among the private accommodation providers and NSFAS funded students," NSFAS reported in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent will be paid out regular monthly on the accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation suppliers’ 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 almost every other sorts of payment towards the lessor, or any other person in reference to this arrangement, together with payment of lease, while awaiting payment from NSFAS. The lessor shall don't have any click here recourse versus the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect selection by read more NSFAS, the scholar will not be chargeable for payment of any arrear rent to the accommodation company, up right until the day of being defunded."
NSFAS stated that wherever the NSFAS-funded student get more info chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student will be responsible for payment of lease to the lessor in the date of becoming defunded.
"Where the student is defunded read more 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 nsfas eligibility criteria 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 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