Accommodation companies urged to stop demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.
This comes soon after NSFAS received experiences about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the non-public accommodation companies and NSFAS funded students," NSFAS stated in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent are going to be paid month to month to the accommodation company (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation providers’ participation on the student accommodation portal.
"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or almost every other types of payment to your lessor, or any other person in connection with this arrangement, together with payment of rent, even though awaiting payment from NSFAS. The lessor shall haven't read more any recourse against the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student nsfas is defunded due to an incorrect choice by NSFAS, the student will not be accountable for payment of any arrear rent for the accommodation supplier, up right up nsfas eligibility criteria until the day of being defunded."
NSFAS discussed that the nsfas academic pathways place the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student are going to be answerable for payment of hire on the lessor from your date 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 click here 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 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