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 to not require a deposit or top-up payment from NSFAS-funded students.
This comes after NSFAS obtained stories about some accommodation vendors who require NSFAS-funded students to pay for a deposit or top-up payment so that you can get access to the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement involving the non-public accommodation vendors and NSFAS funded students," NSFAS said in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent is going to be paid monthly for the accommodation company (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not call for or allow the lessee to pay for a deposit, top-up payments, or another forms of payment towards the lessor, or some other person in reference to this arrangement, which includes payment of rent, whilst awaiting payment from NSFAS. The lessor shall click here don't have any recourse against the lessee for any default in the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect selection by NSFAS, the scholar will click here not be chargeable for payment of any arrear rent for the accommodation service provider, up until the date of being defunded."
NSFAS spelled out that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining read more defunded by NSFAS, the student will be chargeable for payment of hire into the lessor from your date of currently being 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 check here 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 check here 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