Accommodation providers urged to end demanding deposit from NSFAS funded students



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 soon after NSFAS acquired reports about some accommodation companies who need NSFAS-funded students to pay for a deposit or top-up payment to be able to get entry to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies with the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement in between the personal accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will be paid regular monthly to the accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not call for or permit the lessee to pay for a deposit, top-up payments, or almost every other varieties of payment to the lessor, or another person in reference to this arrangement, including payment of lease, though awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default from the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the here student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect choice website by NSFAS, the scholar won't be responsible for payment of any arrear rent on the accommodation supplier, up right until the date of being defunded."

NSFAS stated that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student check here will be responsible for payment of hire to your lessor through the date of becoming 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 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 website between the parties regarding the interpretation website 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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