Accommodation companies urged to stop 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 following NSFAS obtained experiences about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment so that you can get usage of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement between the private accommodation providers and NSFAS funded students," NSFAS said in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid month-to-month for the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or almost every other kinds of payment for the lessor, or almost every other person in reference to this arrangement, which includes payment of rent, though awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default within the payment of more info rent by NSFAS," the agreement reads.
The get more info NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect choice by NSFAS, the coed won't be liable for payment of any arrear rent for the accommodation supplier, up click here until eventually the day of being defunded."
NSFAS explained that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar will be answerable for payment of lease into the lessor from more info the date 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 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 check here 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