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 soon after NSFAS received reports about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment as a way to get access to the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement concerning the personal accommodation vendors and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent is going to be paid out every month for the accommodation supplier (lessor) by NSFAS, on behalf with 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 require or permit the lessee to pay for a deposit, top-up payments, or another forms of payment into the lessor, or another person get more info in connection with read more this agreement, like payment of lease, when awaiting payment from NSFAS. The lessor shall haven't any recourse versus 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 website NSFAS-funded student is defunded because of an incorrect decision by NSFAS, the coed won't be answerable for payment of any arrear rent to the accommodation company, up right up until the date of being defunded."
NSFAS defined that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student are going to be answerable nsfas student allowances for payment of hire towards the lessor with the date 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 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 here 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 of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za