Accommodation vendors urged to stop demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.
This arrives immediately after NSFAS received experiences about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get entry to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement in between the personal accommodation vendors and NSFAS funded students," NSFAS stated in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid out every month for the accommodation supplier (lessor) by NSFAS, on behalf with 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 require or permit the lessee to pay a deposit, top-up payments, or any other types of payment into the lessor, or any other person in reference to this arrangement, together with payment of rent, while awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any default in the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal nsfas status check also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect selection by NSFAS, the student will not be chargeable for payment of any arrear rent towards the accommodation company, up till the date of being defunded."
NSFAS spelled out that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, nsfas the student are going to be liable for payment of lease into the lessor from the day of staying 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 read more 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 nsfas any dispute arising between the parties regarding the interpretation or implementation of the agreement, must be dealt with in accordance with check here any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za