Accommodation providers urged to stop demanding deposit from NSFAS funded 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 after NSFAS gained experiences about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment as a way to get use of the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement concerning the private accommodation companies and NSFAS funded students," NSFAS explained in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent might be paid out monthly to your accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not need or permit the lessee to pay for a deposit, top-up payments, or any other forms of payment to your lessor, or another person in reference to this agreement, which include payment of lease, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default from the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation vendors’ 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 student won't more info be liable for payment of any arrear rent for the accommodation company, up until finally the day of being defunded."
NSFAS explained that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar will be accountable for payment of lease on read more the lessor within the day of being defunded.
"Where the student here 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 here 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 nsfas status check accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za