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



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

This comes immediately after NSFAS gained reports about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment as a way to get use of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement concerning the non-public accommodation providers and NSFAS funded students," NSFAS said in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will be paid out month to month to the accommodation service provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or some other types of payment to the lessor, or another person here in connection with this agreement, which include payment of rent, when awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default within the payment nsfas university allowances of rent by NSFAS," the arrangement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation read more on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect determination by NSFAS, the coed won't be liable for payment of any arrear rent to your accommodation provider, up right until the date of being defunded."

NSFAS discussed that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student is going to be answerable for payment of hire towards the lessor in the day of being 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 without the prior approval of NSFAS, NSFAS may elect not to pay any rental click here to the new accommodation provider, and 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 this purpose.
From: SAnews.gov.za

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