Accommodation companies urged to halt demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.
This arrives right after NSFAS acquired experiences about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment to be able to get use of the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement among the private accommodation companies and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent might be paid out month-to-month for the accommodation supplier (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or almost every other sorts of payment on the lessor, or some other person in connection with this arrangement, which include payment of lease, although awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default from the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also check here states that: "Where the NSFAS-funded student is defunded because of an incorrect determination by NSFAS, the student won't be accountable for payment of any arrear rent on the accommodation provider, up right until the date of being defunded."
NSFAS spelled out that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding nsfas allowances remaining defunded by NSFAS, the student is going to be chargeable for payment of hire towards the lessor through the 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 nsfas status check the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and any such nsfas allowances 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 read more 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