Accommodation providers urged to halt demanding deposit from NSFAS funded college students
Accommodation providers urged to halt demanding deposit from NSFAS funded college students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.
This arrives immediately after NSFAS obtained reports about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment so as to get use of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement involving the personal accommodation providers and NSFAS funded students," NSFAS said in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent will be paid out regular monthly on 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 suppliers’ participation on the student accommodation portal.
"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or almost every other forms of payment to your lessor, or every other person in connection with this arrangement, such as payment read more of lease, while awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for nsfas allowances any default in the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the coed will not be chargeable for payment of any arrear rent into the accommodation provider, up until finally the date of being defunded."
NSFAS discussed that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be liable for payment of hire to the lessor within the day 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 more info 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 website 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 resolution procedure determined by NSFAS for here this purpose.
From: SAnews.gov.za