Accommodation suppliers urged to stop demanding deposit from NSFAS funded university students
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.
This comes immediately after NSFAS gained stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment so as to get usage of the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies of your compulsory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement between the private accommodation providers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent will probably be paid month to month on the accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal.
"The lessor may not have to have or permit the lessee to pay a deposit, top-up payments, or any other varieties of payment to your lessor, or almost every other person in connection with this arrangement, like payment of hire, when awaiting payment from NSFAS. The lessor shall have here no recourse in opposition to the lessee for any default in the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the nsfas NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the student will not be answerable for payment of any arrear rent towards the accommodation supplier, up until eventually the day of being defunded."
NSFAS stated that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student is going to be chargeable for payment of hire to read more the lessor from your date of currently being defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian get more info 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 read more 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