Accommodation companies urged to halt demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to require a deposit or top-up payment from NSFAS-funded students.

This arrives following NSFAS obtained reports about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment in order to get use of 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 concerning the private accommodation vendors and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent will be paid regular for the accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or almost every other types of payment towards the lessor, or any other person in connection with this agreement, like payment of lease, although awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default inside 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 student is defunded because of an incorrect selection by NSFAS, the coed will not be responsible for website payment of any arrear rent into the accommodation service provider, up until eventually the date of being defunded."

NSFAS defined that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student is going to be responsible for payment of rent to the lessor click here from the date 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 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 check here the student own account," the scheme said.

The scheme emphasised that any dispute arising between the parties regarding the interpretation or implementation click here of the agreement, must be dealt with in accordance with nsfas university allowances any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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