Accommodation providers urged to halt demanding deposit from NSFAS funded college 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 acquired stories about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your compulsory conditions, as provided by the Standardised Fixed-Term Lease Arrangement involving the non-public accommodation vendors and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will likely be paid regular into the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or almost every other sorts of payment to your lessor, or every other person in reference to this agreement, which include payment of rent, even though awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default during the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded nsfas application delay student is defunded resulting from an incorrect choice by NSFAS, the student won't be liable for payment of any arrear rent towards the accommodation supplier, here up until the date of being defunded."

NSFAS discussed that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar is going to be answerable for payment of lease to your lessor from the date more info of remaining 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 website 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 here resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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