Accommodation providers urged to end 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 soon after NSFAS acquired experiences about some accommodation providers who require NSFAS-funded students to pay a deposit or top-up payment to be able to get use of the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement amongst the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease might be paid out month-to-month to the accommodation provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or almost every other kinds of payment towards the lessor, or another person in connection with this arrangement, like payment of rent, when awaiting payment from 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 conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect selection by NSFAS, the scholar will not be liable for payment of read more any arrear rent on the accommodation service provider, up right up until the day of being defunded."

NSFAS stated that where by the NSFAS-funded student chooses to carry on occupying the get more info leased more info premises, notwithstanding becoming defunded by NSFAS, the student will be accountable for payment of hire to your 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 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 here procedure determined by NSFAS for this nsfas application delay purpose.
From: SAnews.gov.za

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