Accommodation suppliers 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 just after NSFAS obtained experiences about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Agreement in between the private accommodation vendors and NSFAS funded students," NSFAS explained in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease are going to be paid regular towards the accommodation service provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or almost every other types of payment to the lessor, or almost every other person in connection with this agreement, more info including payment of lease, though awaiting nsfas student document submission deadline payment from NSFAS. The lessor shall have no recourse from the lessee for any default inside the payment of rent by here NSFAS," the arrangement nsfas tvet reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect decision by NSFAS, the student won't be liable for payment of any arrear rent on the accommodation company, up right until the day of being defunded."
NSFAS defined that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student will be responsible for payment of lease on the lessor with the date of becoming defunded.
"Where the student is defunded by NSFAS read more 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 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