Accommodation suppliers urged to halt demanding deposit from NSFAS funded college students



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 following NSFAS obtained reports about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment so as to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation providers from the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement between the non-public accommodation companies and NSFAS funded students," NSFAS said in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent is going to be paid month to month to your accommodation company (lessor) by NSFAS, on behalf from 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 demand or allow the lessee to pay a deposit, top-up payments, or any other sorts of payment towards the lessor, or some other person in connection with this arrangement, which includes payment of hire, click here when awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default in the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect determination by NSFAS, the student will not be check here answerable for payment of any arrear rent to the accommodation supplier, up till the date of being defunded."

NSFAS discussed that where by the NSFAS-funded student chooses to continue occupying the leased click here premises, notwithstanding becoming defunded by NSFAS, the student will be responsible for payment of lease towards the lessor with the day of getting 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 here 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," nsfas student allowances 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

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