Accommodation companies urged to halt demanding deposit from NSFAS funded students
Accommodation companies urged to halt demanding deposit from NSFAS funded students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.
This comes right after NSFAS received stories about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment to be able to get entry to the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers from the obligatory conditions, as provided by the Standardised Fixed-Term Lease Agreement concerning the non-public accommodation providers and NSFAS funded students," NSFAS stated in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid regular monthly to the accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal 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 any other forms of payment towards the lessor, or any other person in reference to this agreement, such as payment of rent, while awaiting payment from NSFAS. The lessor shall here haven't any recourse in opposition to the lessee for any default while in the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and conditions for private check here accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect choice by NSFAS, read more the scholar will not be accountable for payment of any arrear rent towards the accommodation company, up until finally the day of being defunded."
NSFAS discussed that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the scholar will be chargeable for payment of rent to the read more lessor with 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 nsfas document submission deadline 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