Accommodation suppliers urged to halt demanding deposit from NSFAS funded students
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.
This arrives after NSFAS obtained reports about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment in an effort to get usage of the authorized private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement between the personal accommodation providers and NSFAS funded students," NSFAS reported in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease is going to be paid out every month towards the accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not need or permit the lessee to pay a deposit, top-up payments, or some other types of payment on the lessor, or another person in reference to this agreement, nsfas application delay including payment of hire, when awaiting payment from NSFAS. The lessor shall don't have any recourse against the lessee for any default during the payment of rent by NSFAS," the check here 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 as a result of an incorrect determination by NSFAS, the coed won't be accountable for payment of any arrear rent into the accommodation provider, up until the date of being defunded."
NSFAS spelled out that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student is going to be answerable for payment of rent on the lessor in the date of staying defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by check here the lessee/guardian at any stage, nsfas eligibility criteria 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, NSFAS may elect not to pay any rental to the new accommodation provider, and any website 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 resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za