Accommodation companies urged to halt demanding deposit from NSFAS funded college students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.

This comes following NSFAS gained experiences about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment as a way to get use of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers with the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Settlement among the personal accommodation vendors and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will probably be paid every month for the accommodation supplier (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or every other forms of payment to your lessor, or every other person in reference to this agreement, such as payment of lease, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect choice by NSFAS, the coed will not be accountable for payment of any arrear rent into the accommodation provider, up more info until eventually here the date of being defunded."

NSFAS described that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by more info NSFAS, the scholar are going to be answerable for payment of hire to the lessor from your date of getting 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 get more info 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 website with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

Leave a Reply

Your email address will not be published. Required fields are marked *