Accommodation companies urged to halt demanding deposit from NSFAS funded college students
Accommodation companies urged to halt demanding deposit from NSFAS funded college students
Blog Article
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 following NSFAS acquired stories about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get access to the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement concerning the non-public accommodation suppliers and NSFAS funded students," NSFAS stated in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent will be paid out regular monthly on the accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.
"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or another types of payment into the lessor, or every other person in connection with this arrangement, like payment of hire, even though awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default website within the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and conditions get more info 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 answerable for payment of any arrear rent to the accommodation provider, up until finally the date more info of being defunded."
NSFAS explained that exactly where the NSFAS-funded student chooses to continue read more occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar is going to be chargeable for payment of rent towards the lessor from 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 nsfas eligibility criteria 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 purpose.
From: SAnews.gov.za