Accommodation vendors urged to halt 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 arrives after NSFAS received stories about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get usage of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement concerning the personal accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease will likely be paid regular to your accommodation service provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation suppliers’ 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 types of payment for the lessor, or every other person in reference to this agreement, which include payment of lease, even though awaiting payment from NSFAS. The lessor shall don't have any recourse from the lessee for any default from the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation companies’ 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 coed won't be chargeable for payment of any arrear rent for the accommodation service provider, up right until click here the day of being defunded."
NSFAS defined that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student are going to be liable for payment of hire to the lessor with 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 more info 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 check here that any dispute arising between the parties regarding the interpretation or implementation check here of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for more info this purpose.
From: SAnews.gov.za