Accommodation companies urged to stop demanding deposit from NSFAS funded university students
The National Student Financial Aid Scheme (NSFAS) has urged landlords never to demand a deposit or top-up payment from NSFAS-funded students.
This comes right after NSFAS gained stories about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment in an effort to get use of the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement amongst the personal accommodation providers and NSFAS funded students," NSFAS said in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent will be paid out every month to your accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation providers’ participation on the student accommodation portal.
"The lessor may not require or permit the lessee to pay for a deposit, top-up payments, or almost every other types of payment on the lessor, or any other person in reference to this agreement, together with payment of hire, even though awaiting payment from NSFAS. The lessor shall don't have here any recourse towards the lessee for any default in the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student website is defunded as a consequence of an incorrect selection by NSFAS, the student won't be chargeable for payment of any arrear rent for the accommodation provider, up until finally the day of being defunded."
NSFAS spelled out that where read more the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the student are going to be responsible for payment of hire into the lessor from the day of remaining defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by here 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 any rental to the new accommodation provider, and nsfas tvet 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