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 never to require a deposit or top-up payment from NSFAS-funded students.
This arrives after NSFAS acquired reports about some accommodation providers who require NSFAS-funded students to pay a deposit or top-up payment so as to get use of the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement among the private accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent will be paid out regular on the accommodation supplier (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for personal accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or any other varieties of payment towards the lessor, or every other person in connection with this arrangement, which includes payment of lease, whilst awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default during the click here payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as here a result of an incorrect selection by NSFAS, the scholar won't be accountable for payment of any arrear rent on the accommodation service provider, up until eventually the day of being defunded."
NSFAS explained that the place the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding becoming defunded by NSFAS, read more the student is going to be chargeable for payment of hire towards the lessor with the day of currently being defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any more info 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 nsfas eligibility criteria 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