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 gained experiences about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get entry to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement between the private accommodation companies and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent might be paid every month on the accommodation service provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.
"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or some other forms of payment into the lessor, or another person in connection with this here agreement, like payment of hire, although awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default within the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for check here private accommodation providers’ 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 will not be liable for payment of any check here arrear rent to the accommodation service provider, up until the date of being defunded."
NSFAS defined that in which the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the scholar are going to be chargeable for payment of hire on the lessor through the date of becoming 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 nsfas eligibility criteria the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may check here 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