Accommodation companies urged to end demanding deposit from NSFAS funded university students
Accommodation companies urged to end demanding deposit from NSFAS funded university students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.
This comes soon after NSFAS gained stories about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment so as to get access to the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies of the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement in between the private accommodation vendors and NSFAS funded students," NSFAS stated in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent are going to be paid regular monthly to the accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not have to have or allow the lessee to pay for a deposit, top-up payments, or every other kinds of payment to the lessor, or some other person in reference to this agreement, such as website payment of rent, while awaiting payment from NSFAS. The lessor shall have website no recourse in opposition to the lessee for any default within the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect choice by NSFAS, the coed will not be chargeable for payment of any arrear rent to the accommodation company, up till the date of being defunded."
NSFAS defined that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be accountable for payment of lease for the lessor through the date of remaining defunded.
"Where the here 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 more info liable for payment of all rent due to the accommodation provider.
"Where the student moves, 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 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