Accommodation vendors 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 immediately after NSFAS gained experiences about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment as a way to get usage of the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement amongst the private accommodation providers and NSFAS funded students," NSFAS said in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease will probably be paid out month-to-month for the accommodation provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.
"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or some other sorts of payment towards the lessor, or another person in reference to this arrangement, which include payment of nsfas academic pathways rent, whilst awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default from the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation companies’ click here 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 student won't be answerable for payment of any arrear rent to your accommodation service provider, up until the day of being defunded."
NSFAS spelled out that the place the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student will be chargeable for payment of rent into the lessor with the date of staying defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any website stage, the student must immediately vacate the leased property; and will be liable for payment of all rent due to the accommodation website provider.
"Where check here 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