Accommodation companies urged to halt demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This arrives just after NSFAS received reports about some accommodation providers who require NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the approved 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 rent might be paid every month to the accommodation service provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or every other kinds of payment towards the lessor, or almost every other person in connection with this arrangement, such as payment of lease, here while awaiting 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 suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded here because of an incorrect selection by NSFAS, the scholar will not be chargeable for payment of any arrear rent to the accommodation supplier, up until eventually the date of being defunded."

NSFAS described that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar will be accountable for payment of lease to your lessor from the date of becoming defunded.

"Where the student is defunded by NSFAS due to a more info 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 more info 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 nsfas allowances 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

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