Accommodation companies urged to stop demanding deposit from NSFAS funded university students
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.
This arrives following NSFAS received stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment so as to get usage of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the compulsory conditions, as provided by the Standardised Fixed-Term Lease Arrangement concerning the private accommodation companies and NSFAS funded students," NSFAS explained in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease are going to be paid out monthly to the accommodation provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not demand or permit the lessee to pay for a deposit, top-up payments, or some other types of payment on the lessor, or some other person in connection with this agreement, including 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 providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of website an incorrect selection by NSFAS, the student won't be accountable for payment of any arrear rent to your accommodation supplier, up right until the date of being defunded."
NSFAS discussed that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by here NSFAS, the scholar will be accountable for payment of lease on the lessor with read more the day of 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 new accommodation provider, and any click here 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 get more info NSFAS for this purpose.
From: SAnews.gov.za