Accommodation companies urged to end 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 comes immediately after NSFAS received stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement amongst the personal accommodation providers and NSFAS funded students," NSFAS said in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent will probably be paid out every month to the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or any other forms of payment into the lessor, or almost every other person in connection with this arrangement, which includes payment of rent, when awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default while in the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect choice by NSFAS, the coed will not nsfas document submission deadline be responsible for payment of any arrear rent into the accommodation company, up right up until the date of being defunded."
NSFAS stated that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the student is going to be answerable check here for payment of rent on the lessor from the day of staying 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 read more will here be liable for payment of all rent due to the accommodation provider.
"Where 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 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