Accommodation companies urged to stop demanding deposit from NSFAS funded students
Accommodation companies urged to stop demanding deposit from NSFAS funded students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.
This arrives right after NSFAS received stories 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 authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers with the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement in between the personal accommodation vendors and NSFAS funded students," NSFAS stated in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease are going to be paid out month to month to your accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or any other forms of payment to the lessor, or any get more info other person in reference to this arrangement, like payment of lease, whilst awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default from the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded read more as a consequence of an incorrect choice by NSFAS, the scholar will not be chargeable for payment of any arrear rent towards the accommodation supplier, up till the date of being defunded."
NSFAS discussed that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, click here notwithstanding being defunded by NSFAS, the scholar will be liable for payment of rent towards the lessor with the day of remaining defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any click here 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 read more 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