Accommodation companies urged to end demanding deposit from NSFAS funded university 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 arrives immediately after NSFAS been given reports about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment in order to get entry to the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies with the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement among the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent is going to be paid out month-to-month towards the accommodation supplier (lessor) by NSFAS, on behalf on the 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 have to have or permit the lessee to pay for a deposit, top-up payments, or every other kinds of payment to your lessor, or another person in reference to this arrangement, which include payment of lease, even though awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default during the payment of rent by NSFAS," the arrangement here 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 consequence of an incorrect decision by NSFAS, the coed will not be responsible read more for payment of any arrear rent to the accommodation provider, up until eventually the date of being defunded."

NSFAS explained that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the website student is going to be chargeable for payment of lease on the lessor with the 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 will be liable for payment of all rent here 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 nsfas student document submission deadline 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

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