Accommodation providers urged to end 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 comes just after NSFAS obtained reports 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 accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the non-public accommodation companies and NSFAS funded students," NSFAS said in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease will probably be paid regular monthly towards the accommodation service provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not need or allow the lessee to pay for a deposit, top-up payments, or some other varieties of payment for the lessor, or another person in connection with this agreement, which include payment of hire, although awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default within the payment of rent by NSFAS," the agreement 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 as a consequence of an incorrect decision by NSFAS, the student will not be liable for payment of any arrear rent for the accommodation supplier, more info up until eventually the day of being defunded."
NSFAS spelled out that wherever the NSFAS-funded student click here chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student will be liable for payment of hire to get more info your lessor through the date of being 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 website 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 such rental payments will be nsfas student allowances 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