Accommodation companies urged to stop demanding deposit from NSFAS funded college students



The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.

This arrives soon after NSFAS been given stories about some accommodation vendors who need NSFAS-funded students to pay a deposit or top-up payment as a way to get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies with the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Agreement amongst the personal accommodation suppliers and NSFAS funded students," NSFAS reported in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent is going to be paid out month-to-month on the accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay for a deposit, top-up payments, or another varieties of payment to your lessor, or almost every other person in connection with this arrangement, together with payment of hire, although read more awaiting get more info payment from NSFAS. The lessor shall have no recourse versus the lessee for any default while in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect choice by NSFAS, the scholar won't be accountable for payment of any arrear rent into the accommodation supplier, up right until the day of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar are going to be liable for payment of hire into the lessor with nsfas allowances the day 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 nsfas eligibility criteria any such rental payments will be for the student nsfas 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

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