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 arrives after NSFAS received reports about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment in an effort to get use of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement between the non-public accommodation providers and NSFAS funded students," NSFAS reported in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will probably be paid monthly on the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not have to have or permit the lessee to pay a deposit, top-up payments, or any other kinds of payment on the lessor, or another person in reference to this arrangement, which include payment of rent, when awaiting payment from NSFAS. The lessor shall have no recourse in opposition to the lessee for any nsfas allowances default in the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect selection by NSFAS, the scholar won't be liable for payment of any arrear rent to the accommodation supplier, up until the date of being defunded."
NSFAS defined that wherever the NSFAS-funded student chooses to continue occupying read more the leased premises, notwithstanding getting defunded by NSFAS, the scholar will be liable for payment of hire on the lessor from the date of remaining 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 student moves, accommodation providers without the prior approval of NSFAS, website 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 more info any dispute arising between the parties read more 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