Accommodation vendors urged to stop demanding deposit from NSFAS funded college students
Accommodation vendors urged to stop demanding deposit from NSFAS funded college students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to require a deposit or top-up payment from NSFAS-funded students.
This comes following NSFAS received experiences about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment in an effort to get usage of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers in the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement concerning the non-public accommodation vendors and NSFAS funded students," NSFAS reported in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent will likely be paid out month-to-month on the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not demand or permit the lessee to pay for a deposit, top-up payments, or every other kinds of payment on the lessor, or some other person in connection with this agreement, which includes payment of rent, although awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default in the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect determination by NSFAS, the get more info coed will not be answerable for payment of any arrear rent on the accommodation service provider, up until eventually the day of being defunded."
NSFAS described that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be liable for payment of lease into the lessor in the date of currently 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 read more payment of all rent due to the accommodation provider.
"Where the student moves, accommodation providers check here without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new here accommodation provider, and any such rental payments will be for the student here 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