Accommodation providers urged to end demanding deposit from NSFAS funded 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 obtained reports about some accommodation vendors who demand NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement concerning the personal accommodation providers and NSFAS funded students," NSFAS explained in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease will likely be paid out monthly to your accommodation supplier (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or almost every other types of payment into the lessor, or every other person in reference to this agreement, like payment of lease, while awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default in the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and conditions website for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect determination by NSFAS, the scholar won't be answerable here for payment of any arrear rent to the accommodation provider, up till the date of being defunded."
NSFAS stated that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, more info the student are going to get more info be chargeable for payment of lease to the lessor through 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 website 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 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