Accommodation companies urged to stop demanding deposit from NSFAS funded university 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 following NSFAS acquired stories about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get use of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement concerning the non-public accommodation suppliers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will be paid every month to the accommodation service provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation providers’ participation on the student accommodation portal.
"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or another sorts of payment towards the lessor, or another person in connection with this arrangement, which include payment get more info of hire, when awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default within the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions click here and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect choice by NSFAS, the scholar will not be answerable for payment of any arrear rent for the accommodation service provider, up right up until the day of being defunded."
NSFAS described that where by the NSFAS-funded student chooses to continue occupying the here leased premises, notwithstanding currently being defunded by NSFAS, the scholar will be chargeable for payment of hire towards the lessor through the day of being defunded.
"Where the student is defunded by check here 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 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 more info be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za