Accommodation vendors urged to stop demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to require a deposit or top-up payment from NSFAS-funded students.

This arrives soon after NSFAS gained reports about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment so as to get access to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies of your obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement amongst the personal accommodation companies and NSFAS funded students," NSFAS stated in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid regular on the accommodation service provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation suppliers’ 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 for the lessor, or some other person in connection with this agreement, which include payment of lease, while awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation here portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect determination by NSFAS, the scholar won't be liable for payment of any arrear rent towards the accommodation supplier, up until eventually the day of being check here defunded."

NSFAS stated that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the nsfas allowances student are going to be chargeable for payment of lease on the lessor through the date of being defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the more info 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 regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute nsfas allowances resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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