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 comes after NSFAS obtained reports about some accommodation companies who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get access to the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers with the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement concerning the private accommodation vendors and NSFAS funded students," NSFAS stated in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid regular monthly into the accommodation provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or another varieties of payment to the lessor, or any other person in reference to this agreement, together with payment of lease, although awaiting payment from NSFAS. The lessor shall haven't more info any here recourse towards the lessee for any default from the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect decision by NSFAS, the student will not be accountable for payment of any arrear rent towards the accommodation company, up until the date of being more info defunded."
NSFAS spelled out that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar is going to be liable for payment of lease towards the lessor through the date of getting 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 nsfas academic pathways 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 more info 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