Accommodation companies urged to stop demanding deposit from NSFAS funded 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 received stories about some accommodation vendors who demand NSFAS-funded students to pay for a deposit or top-up payment so that you can get use of 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 among the non-public accommodation vendors and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease will be paid out regular monthly to the accommodation supplier (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation providers’ participation on the student accommodation portal.
"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or almost every other varieties of payment to the lessor, or every other person in nsfas connection with this arrangement, such as payment of rent, when awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default in the payment of here rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation companies’ participation website on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the student check here will not be accountable for payment of any arrear rent towards the accommodation provider, up until the day of being defunded."
NSFAS stated that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student are going to be liable for payment of hire to your lessor through the date of remaining defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the here 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 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