Accommodation companies urged to end demanding deposit from NSFAS funded university students
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.
This comes just after NSFAS gained experiences about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies on the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement among the non-public accommodation suppliers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent might be paid out monthly towards the accommodation service provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not require or permit the lessee to pay a deposit, top-up payments, or any other forms of payment into the lessor, or another person in reference to this agreement, including payment of lease, while awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default during the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and more info conditions for private accommodation providers’ nsfas eligibility criteria participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect selection by NSFAS, the scholar will not be responsible for payment of any arrear rent to your accommodation provider, up right up until the day of being defunded."
NSFAS stated that where the NSFAS-funded student chooses to carry on occupying the leased premises, nsfas university allowances notwithstanding currently being defunded by NSFAS, the scholar will be chargeable for payment of rent to the lessor through the day of staying defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at nsfas document submission deadline any stage, the student must immediately read more 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 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