Accommodation companies urged to stop demanding deposit from NSFAS funded students
Accommodation companies urged to stop 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 comes following NSFAS acquired stories about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment in order to get access to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers with the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement involving the non-public accommodation vendors and NSFAS funded students," NSFAS said in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease is going to be paid out month to month towards the accommodation supplier (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or another types of payment on the lessor, or another person in connection with this arrangement, together with payment of rent, when awaiting payment from NSFAS. The lessor shall don't have any recourse from the lessee for any default in the payment of rent by NSFAS," more info the arrangement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the check here NSFAS-funded student is defunded because of an incorrect decision by NSFAS, the coed will not be liable for payment of any arrear rent for the accommodation service provider, up until the date of being defunded."
NSFAS described that the place the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be responsible for payment of hire to your lessor from the day of being defunded.
"Where the student is defunded by read more 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 get more info 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, must be dealt with in accordance with any dispute read more resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za