Accommodation suppliers urged to stop 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 just after NSFAS been given stories about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment in order to get use of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers of your compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement between the private accommodation vendors and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will be paid regular monthly towards the accommodation company (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.

"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or some other sorts of payment to your lessor, or some other person in reference to this arrangement, together with payment of rent, whilst awaiting payment from more info NSFAS. The lessor shall have no recourse towards the lessee for any default while in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal read more also states that: "Where the NSFAS-funded student is defunded due to an incorrect determination by NSFAS, the coed will not be answerable for payment of any arrear get more info rent on the accommodation supplier, up until finally the date read more of being defunded."

NSFAS stated that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the scholar will be responsible for payment of rent to the lessor from the day 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 nsfas allowances 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 purpose.
From: SAnews.gov.za

Leave a Reply

Your email address will not be published. Required fields are marked *