Accommodation companies urged to halt 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 arrives after NSFAS received reports about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment so as to get entry to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement in between the personal accommodation vendors and NSFAS funded students," NSFAS stated in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent is going to be paid regular monthly to your accommodation company (lessor) by NSFAS, on behalf in the 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 need or allow the lessee to pay a deposit, top-up payments, or any other kinds of payment to your lessor, or some other person in reference to this agreement, such as payment of lease, while awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect selection by NSFAS, the scholar will nsfas eligibility criteria not be nsfas responsible for payment of any arrear rent on the accommodation supplier, up until finally the date of being defunded."

NSFAS discussed that the place the NSFAS-funded student chooses to carry on here occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar are going to be answerable for payment of hire to your lessor within the day of remaining website 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 click here 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

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