Accommodation companies urged to end demanding deposit from NSFAS funded college students



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to require a deposit or top-up payment from NSFAS-funded students.

This arrives immediately after NSFAS been given experiences about some accommodation vendors who demand 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 of your compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement involving the private accommodation companies and NSFAS funded students," NSFAS explained in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will likely be paid regular monthly for the accommodation service provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not demand or allow the lessee to pay for a deposit, top-up payments, or every other kinds of payment for the lessor, or every other person in connection with this arrangement, which includes payment of hire, although awaiting payment from NSFAS. The lessor shall haven't any recourse towards the lessee for any default from the payment of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation vendors’ 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 answerable for payment of any arrear rent for the accommodation supplier, up right up until the day of nsfas tvet being defunded."

NSFAS described that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar are going to be answerable for payment of rent towards the lessor with the day of click here 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 check here payment of all rent due to the accommodation provider.

"Where the student moves, accommodation providers read more 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 nsfas student allowances 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

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