Accommodation suppliers urged to stop demanding deposit from NSFAS funded college students
Accommodation suppliers urged to stop demanding deposit from NSFAS funded college students
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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 right after NSFAS obtained stories about some accommodation companies who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get entry to the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers in the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement amongst 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 rent will likely be paid regular into the accommodation service 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 have to have or permit the lessee to pay for a deposit, top-up payments, or some other types of payment towards the lessor, or another person in connection with this arrangement, like payment of hire, although awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default from the payment nsfas application delay of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect determination by NSFAS, the student won't be accountable for payment of any arrear rent on the accommodation get more info provider, up right until the date of being defunded."
NSFAS discussed that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student is going to be responsible for payment of lease for the here lessor through the date of becoming 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 of NSFAS, NSFAS may elect not here to pay any rental to the new accommodation provider, and any such rental payments will be read more 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