Accommodation companies urged to end demanding deposit from NSFAS funded university students
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.
This comes just after NSFAS obtained reports about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment so that you can get usage of the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement concerning the personal accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent will be paid month-to-month to the accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation providers’ 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 varieties of payment towards the lessor, or almost every other person in reference to this arrangement, which includes payment of lease, even though awaiting payment from NSFAS. The lessor shall haven't any recourse against the lessee for any default within the payment of click here rent by NSFAS," the agreement reads.
The nsfas allowances NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect determination by NSFAS, the scholar won't be chargeable for payment of any arrear rent into the accommodation service provider, up until the day of being defunded."
NSFAS explained that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding staying defunded by NSFAS, the student will be chargeable for payment of lease towards the lessor from the day of getting 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 get more info 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, website and any such rental payments will be for the student own account," the scheme said.
The more info 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