Accommodation companies urged to halt demanding deposit from NSFAS funded college students
Accommodation companies urged to halt 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 soon after NSFAS received stories about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment so as to get access to the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement between the private accommodation companies and NSFAS funded students," NSFAS explained in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent will be paid month to month on the accommodation company (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with 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 a deposit, top-up payments, or any other varieties of payment towards the lessor, or another person in connection with this arrangement, such as payment of lease, while awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default from 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 won't be responsible for payment of any arrear rent to your accommodation company, up till the day of being defunded."
NSFAS described that where by the NSFAS-funded more info student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, here the scholar are going to be accountable for payment of lease to your lessor in the date of getting defunded.
"Where the nsfas student allowances 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 student moves, accommodation here 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, get more info must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za