Accommodation companies urged to end demanding deposit from NSFAS funded college students
Accommodation companies urged to end 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 after NSFAS gained stories about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment as a way to get access to the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies with the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement between the non-public accommodation suppliers and NSFAS funded students," NSFAS explained in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease will be paid regular monthly to your accommodation company (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.
"The lessor may not require or permit the lessee to pay a deposit, top-up payments, or some other kinds of payment on the lessor, or any other person in reference to this arrangement, such as payment of rent, whilst awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the nsfas university allowances 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 as a result of an incorrect selection by NSFAS, the scholar won't be liable for payment of any arrear rent to the accommodation service provider, up till the day of being defunded."
NSFAS explained that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the scholar are going to be responsible for payment of lease for the lessor in the date of remaining defunded.
"Where the student is defunded more info 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 website 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 here rental to the new accommodation provider, and any such rental payments will be for the student own account," check here 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