Accommodation vendors urged to stop 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 right after NSFAS received stories about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies in the compulsory conditions, as provided by the Standardised Fixed-Term Lease Arrangement amongst the non-public accommodation vendors and NSFAS funded students," NSFAS said in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease will probably be paid regular monthly on the accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation suppliers’ 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 kinds of payment on the lessor, or some other person in connection with this agreement, including payment of lease, whilst awaiting payment from NSFAS. The lessor shall haven't any website recourse towards the lessee for any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation providers’ get more info participation on the student accommodation more info portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the coed won't be liable for payment of any arrear rent to your accommodation service provider, up until eventually the day of being defunded."

NSFAS defined that in which the NSFAS-funded student chooses to carry on occupying the more info leased premises, notwithstanding currently being defunded by NSFAS, the student is going to be responsible for payment of rent towards the lessor from your 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 between the parties check here 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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