Accommodation companies urged to stop demanding deposit from NSFAS funded college students
Accommodation companies urged to stop demanding deposit from NSFAS funded college students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.
This comes right after NSFAS gained reports about some accommodation vendors who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get access to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement amongst the non-public accommodation providers and NSFAS funded students," NSFAS stated in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease will likely be paid regular monthly into the accommodation supplier (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or some other kinds of payment towards the lessor, or another person in reference to this arrangement, together with payment of hire, even though awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any default from the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also more info states that: "Where the NSFAS-funded student is defunded because of an incorrect determination by NSFAS, the student won't be responsible for payment of any arrear rent to the accommodation company, up until the day of being defunded."
NSFAS described that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar will be accountable for payment of lease to your lessor from 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 click here 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 nsfas student allowances pay any rental to the new accommodation provider, and check here any read more 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