Accommodation companies urged to stop 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 right after NSFAS been given experiences about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment to be able to get access to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement in between the non-public accommodation companies and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent will be paid out regular monthly to the accommodation supplier (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or another forms of payment for the lessor, or almost every other person in connection with nsfas login this agreement, like payment of lease, even though awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default during the payment of rent by NSFAS," the agreement reads.
The NSFAS terms here and conditions 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 student won't be chargeable for payment of any arrear rent to your accommodation service provider, up until the day of being defunded."
NSFAS stated that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar are going to be liable for payment of rent for the lessor with the date of getting defunded.
"Where the student is read more 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 more info 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 read more resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za