Accommodation companies urged to halt demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.
This comes after NSFAS been given reports about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment in an effort to get use of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers in the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement in between the non-public accommodation suppliers and NSFAS funded students," NSFAS reported in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease might be paid month to month towards the accommodation provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not call for or permit the lessee to pay a deposit, top-up payments, or almost every other forms of payment towards the lessor, or some other person in reference to this agreement, including payment of rent, whilst awaiting payment from click here NSFAS. The lessor shall have no recourse versus the lessee for any default from the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect choice by NSFAS, click here the student will not be responsible for payment of any arrear rent towards the accommodation service provider, up till the date of being defunded."
NSFAS spelled out that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar check here will be chargeable for payment of rent on the lessor through the date read more of 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 website 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 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