Accommodation providers urged to halt 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 just after NSFAS obtained reports about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment to be able to get usage of the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers with the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement concerning the non-public accommodation vendors and NSFAS funded students," NSFAS reported in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease might be paid regular monthly on the accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.
"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or any other varieties of payment to your lessor, or some other person in connection with this agreement, which includes payment of hire, even though awaiting payment from NSFAS. The lessor shall nsfas allowances have no recourse versus the lessee for any default while 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 also states that: "Where the NSFAS-funded student is defunded as nsfas allowances a result of an incorrect determination by NSFAS, the student more info will not be answerable for payment of any arrear rent on the accommodation service provider, up right up until the day of being defunded."
NSFAS defined that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student nsfas student allowances will be responsible for payment of lease for the lessor through the date of getting 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 such rental payments will read more 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