Accommodation suppliers 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 arrives soon after NSFAS been given reports about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers with the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement between the private accommodation providers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent might be paid out month-to-month on the accommodation service provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not call for or permit the lessee to pay for a deposit, top-up payments, or almost every other varieties of payment into the lessor, or another person in reference to this agreement, such as payment of hire, although awaiting payment from NSFAS. The lessor shall get more info have no recourse versus the lessee for any default in 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 as a result read more of an incorrect decision by NSFAS, the coed will not be liable for payment of any arrear rent to your accommodation provider, up till the date of being defunded."
NSFAS stated that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar is going to be answerable for payment of lease towards the lessor from the date of currently being defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any nsfas tvet stage, the student must immediately vacate the leased property; and will be liable more info for payment of all rent due to the accommodation provider.
"Where the student moves, accommodation providers without the prior nsfas academic pathways 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 with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za