Accommodation suppliers urged to stop demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.
This comes just after NSFAS acquired stories about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment so that you can get use of the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement amongst the private accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent will probably be paid out month to month towards the accommodation service provider (lessor) by NSFAS, on behalf on the 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 require or allow the lessee to pay a deposit, top-up payments, or any other forms of payment towards the lessor, or another person in connection with this arrangement, such as payment of hire, although awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default during the payment of rent here by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect determination by NSFAS, nsfas allowances the student will not be chargeable for payment of any arrear rent towards the accommodation company, up right up until the date of being defunded."
NSFAS described that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student is going to be chargeable for payment of hire for the lessor within the day of getting defunded.
"Where the student is defunded read more by NSFAS check here 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 of NSFAS, NSFAS may elect not to pay any rental to the new click here 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