Accommodation vendors urged to stop demanding deposit from NSFAS funded students
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.
This arrives after NSFAS received reports about some accommodation vendors who need NSFAS-funded students to pay a deposit or top-up payment in order to get usage of the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Arrangement amongst the private accommodation vendors and NSFAS funded students," NSFAS mentioned in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent will be paid out regular for the accommodation service provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal.
"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or another kinds of payment towards the lessor, or another person in connection with this agreement, like payment of hire, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default inside the payment of rent by NSFAS," the arrangement 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 consequence of an incorrect decision by NSFAS, the student will not be chargeable for payment of any arrear rent into the accommodation provider, up right nsfas allowances until the day of being defunded."
NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be responsible for payment of lease for the lessor nsfas student allowances through the date 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 payment of all rent due to the accommodation provider.
"Where the student moves, accommodation providers without the prior approval more info of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and any such rental payments nsfas university allowances will be for read more 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 resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za