Accommodation vendors urged to stop demanding deposit from NSFAS funded university students
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 right after NSFAS received experiences about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment in order to get usage of the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement concerning the personal accommodation suppliers and NSFAS funded students," NSFAS said in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent might be paid month-to-month to the accommodation company (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or another types of payment for the lessor, or another person in reference to this agreement, which includes payment of hire, whilst awaiting more info payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions 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 decision by NSFAS, the student won't be accountable for payment of any arrear rent to your accommodation provider, up right up until the day of being defunded."
NSFAS defined that the place 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 lease on the lessor through the more info date of staying 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, check here accommodation website providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and any such rental more info 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