Accommodation providers urged to end demanding deposit from NSFAS funded college students
Accommodation providers urged to end demanding deposit from NSFAS funded college students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.
This arrives right after NSFAS received reports about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement concerning the non-public accommodation suppliers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease are going to be paid month to month for the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or almost every other types of payment into the lessor, or some other person in reference to this agreement, together with payment of lease, though awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default inside the payment of rent by NSFAS," get more info 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 due to an incorrect read more choice by NSFAS, the scholar won't be responsible get more info for payment of any arrear rent into the accommodation provider, up until eventually the date click here of being defunded."
NSFAS described that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the student are going to be answerable for payment of rent for the lessor with the day 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 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 resolution procedure determined by NSFAS for this read more purpose.
From: SAnews.gov.za