Accommodation companies urged to halt demanding deposit from NSFAS funded university 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 comes right after NSFAS gained stories about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement amongst the private accommodation companies and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent might be paid month-to-month on the accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not need or allow the lessee to pay for a deposit, top-up payments, or some other forms of payment to the lessor, or any other person in reference to this agreement, which includes payment of rent, though awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default within the payment of rent by NSFAS," the arrangement 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 will not be liable for payment of any arrear rent to your accommodation supplier, up till the day of being defunded."
NSFAS defined that wherever the NSFAS-funded student chooses to continue more info occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar will be chargeable for payment of hire for the lessor with the date of getting defunded.
"Where the student is more info 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 status check the student moves, accommodation providers without the prior approval of NSFAS, read more NSFAS may elect not to pay any rental to the new accommodation provider, and any read more 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