Accommodation providers urged to halt demanding deposit from NSFAS funded college students



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 immediately after NSFAS been given experiences about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment in order to get entry to the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies with the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Settlement amongst the non-public accommodation companies and NSFAS funded students," NSFAS mentioned in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent are going to be paid regular towards the accommodation service provider (lessor) by NSFAS, on behalf of 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 involve or permit the lessee to pay a deposit, top-up payments, or almost every other kinds of payment into the lessor, or any other person in connection with this arrangement, like payment of hire, although awaiting payment from NSFAS. The lessor shall haven't any recourse from the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect selection by NSFAS, the coed won't be website responsible for payment of any arrear rent for the accommodation company, up until finally the day of being defunded."

NSFAS defined that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student are going to be responsible for read more payment of lease for the lessor in 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 more info 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 payments will be for the student own account," the scheme said.

The scheme emphasised that any dispute arising between check here the parties regarding the interpretation or implementation of the click here 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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