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 comes just after NSFAS gained experiences about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the non-public accommodation companies and NSFAS funded students," NSFAS said in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease is going to be paid out month to month to the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or almost every other varieties of payment for the lessor, or another more info person in connection with this arrangement, such as payment of hire, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse against the lessee for any default from the payment nsfas status check of rent by NSFAS," the agreement reads.
The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states read more that: "Where the NSFAS-funded student is defunded because of an incorrect selection by NSFAS, the student will not be responsible for payment of any arrear rent to your accommodation provider, up right up until the day of being defunded."
NSFAS defined that the 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 rent for the lessor with the day of currently being defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student must get more info 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 check here 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