Accommodation companies urged to halt demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This comes after NSFAS received experiences about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment so as to get entry to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors with the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement involving the private accommodation companies and NSFAS funded students," NSFAS reported in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid out regular to the accommodation supplier (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.

"The lessor may not demand or permit the lessee to pay for a deposit, top-up payments, or another varieties of payment to the lessor, or every other person in connection with this arrangement, together here with payment of rent, whilst awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default during the payment of rent by NSFAS," the arrangement 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 due to an incorrect determination by NSFAS, the coed will not be accountable for payment of any arrear rent into the accommodation company, up right up until the day of being defunded."

NSFAS discussed that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student are going to be responsible for payment of hire towards the lessor with 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 here 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 nsfas allowances such rental payments will be for the student own account," the scheme said.

The nsfas university allowances 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 nsfas login dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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