Accommodation companies urged to halt 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 comes soon after NSFAS obtained reports about some accommodation providers who require NSFAS-funded students to pay a deposit or top-up payment so as to get use of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement between the non-public accommodation suppliers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the lease is going to be paid every month for the accommodation company (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal 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 sorts of payment into the lessor, or any other person in connection with this arrangement, such as payment of rent, whilst awaiting payment from NSFAS. The lessor shall have no recourse website towards the lessee for any default in the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal read more also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect determination by NSFAS, the student will not be answerable for payment of any arrear rent for the accommodation service provider, up until eventually the date of being defunded."

NSFAS spelled out that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student is going to be responsible for payment of hire on the lessor with the day of becoming defunded.

"Where the student is defunded by NSFAS due to a misrepresentation more info 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 more info 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 here 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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