Accommodation vendors urged to halt demanding deposit from NSFAS funded college students
Accommodation vendors urged to halt demanding deposit from NSFAS funded college students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.
This comes following NSFAS received reports about some accommodation companies who need NSFAS-funded students to pay for a deposit or top-up payment as a way to get usage of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies of the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement involving the private accommodation companies 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 regular to your accommodation service provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not call for or allow the lessee to pay a deposit, top-up payments, or some other varieties of payment on the lessor, or some other person in reference to this agreement, together with payment of hire, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse in opposition to the lessee for any default during the payment 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 due to an incorrect selection by click here NSFAS, the student won't be liable for payment of any arrear rent to your accommodation provider, up until the date of being defunded."
NSFAS explained that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be accountable for payment of read more rent into the lessor from your date of staying defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, nsfas application delay 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 such rental check here 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 read more be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za