Accommodation companies urged to stop demanding deposit from NSFAS funded college students
Accommodation companies urged to stop demanding deposit from NSFAS funded college students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.
This comes immediately after NSFAS acquired experiences about some accommodation vendors who need NSFAS-funded students to pay for a deposit or top-up payment as a way to get entry to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers in the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Agreement amongst the non-public accommodation vendors and NSFAS funded students," NSFAS reported in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will be paid out monthly towards the accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or almost every other varieties of payment to the lessor, or another person in reference to this arrangement, like payment of lease, while awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default in the payment of rent by NSFAS," 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 on account of an incorrect more info choice by NSFAS, the scholar will not be chargeable for payment of any arrear rent to the accommodation service provider, up right until the day of being defunded."
NSFAS defined that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be liable for payment of rent on the lessor within the day of being defunded.
"Where the student is defunded click here 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 more info 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 more info 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 nsfas allowances purpose.
From: SAnews.gov.za