Accommodation suppliers urged to stop 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 arrives just after NSFAS gained experiences about some accommodation companies who need NSFAS-funded students to pay for a deposit or top-up payment so as to get entry to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement concerning the non-public accommodation suppliers and NSFAS funded students," NSFAS explained in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease will probably be paid monthly to the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions 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 another sorts of payment for the lessor, or any other person in connection with this arrangement, like payment of hire, while awaiting payment from NSFAS. The lessor shall have no website recourse against the lessee for any default inside the payment of rent by NSFAS," the arrangement 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 on account of an incorrect determination by NSFAS, the student will not be responsible for payment of any arrear rent into the accommodation supplier, up until finally the date of being defunded."
NSFAS discussed that wherever the NSFAS-funded student chooses to carry on occupying the nsfas status check leased premises, notwithstanding staying defunded by NSFAS, the scholar are going to be responsible for payment of rent towards the lessor here in the day of remaining defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any nsfas academic pathways 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 here with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za