Accommodation vendors urged to stop demanding deposit from NSFAS funded university students
Accommodation vendors urged to stop demanding deposit from NSFAS funded university students
Blog Article
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 right after NSFAS obtained reports about some accommodation suppliers who require NSFAS-funded students to pay a deposit or top-up payment so as to get access to the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement among the private accommodation companies and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease is going to be paid out every month to the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or some other sorts of payment towards the lessor, or another person in connection with this arrangement, including payment of rent, whilst awaiting payment from NSFAS. The lessor shall don't have any recourse check here in opposition to the lessee for any default from the payment here 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 read more defunded resulting from an incorrect determination by NSFAS, the coed won't be liable for payment of any arrear rent into the accommodation company, up until finally the day of being defunded."
NSFAS stated that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded by NSFAS, the student will be responsible for payment of lease to the lessor from the date of 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 payment of all rent due to the accommodation provider.
"Where the student moves, accommodation providers without the here prior approval of NSFAS, NSFAS may elect not to pay any rental 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 read more of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za