Accommodation companies urged to stop demanding deposit from NSFAS funded college students
Accommodation companies urged to stop demanding deposit from NSFAS funded college students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.
This comes following NSFAS received reports about some accommodation companies who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get use of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement amongst the private accommodation vendors and NSFAS funded students," NSFAS reported in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will be paid out month to month into the accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions 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 some other kinds of payment to your lessor, or some other person in connection with this arrangement, together with payment of hire, even though awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default inside the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect determination by NSFAS, the coed will not more info be accountable for payment of any arrear rent into the accommodation supplier, up right up until the date of being defunded."
NSFAS read more spelled out that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar are going to be accountable for payment of hire towards the lessor in the day of being defunded.
"Where the student is defunded by NSFAS due click here 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 more info the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may elect not nsfas allowances 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