Accommodation vendors urged to end demanding deposit from NSFAS funded university 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 just after NSFAS obtained reports about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment in order to get use of the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement in between the personal accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent is going to be paid regular monthly on the accommodation supplier (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not require or permit the lessee to pay for a deposit, top-up payments, or any other varieties of payment to the lessor, or any other person in reference to this arrangement, here like payment of rent, whilst awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default during the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the read more NSFAS-funded student is here defunded due to an incorrect determination by NSFAS, the student won't be chargeable for payment of any arrear rent into the accommodation company, up until eventually the day of being defunded."
NSFAS explained that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar is going to be accountable for payment of hire to your lessor from your day of currently being 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 read more 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 read more 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