Accommodation companies urged to stop demanding deposit from NSFAS funded university students
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 acquired reports about some accommodation providers who require NSFAS-funded students to pay for a deposit or top-up payment in an effort to get entry to the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement in between the personal accommodation suppliers and NSFAS funded students," NSFAS explained in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent is going to be paid monthly for the accommodation supplier (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal.
"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or some other kinds of payment towards the lessor, or almost every other person in connection with this agreement, together with payment of lease, when awaiting more info payment from NSFAS. The lessor shall have no recourse against the lessee for any default from the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation providers’ click here participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect decision by NSFAS, the coed won't be accountable for payment of any arrear rent on the accommodation provider, up until eventually the day of being defunded."
NSFAS stated that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student will be answerable for payment of lease to click here your lessor from the day of staying 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 nsfas student allowances 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 nsfas the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za