Accommodation providers urged to stop demanding deposit from NSFAS funded 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 just after NSFAS obtained reports about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment as a way to get entry to the approved 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 private accommodation vendors and NSFAS funded students," NSFAS mentioned in a statement on Thursday.

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

"The lessor may not demand or permit the lessee to pay a deposit, top-up payments, or another forms of payment on the lessor, or some other person in connection with this agreement, which includes payment of rent, although awaiting payment nsfas university allowances from NSFAS. The lessor shall have no recourse towards the lessee for any default within the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect choice by NSFAS, the nsfas student will not be liable for payment of any arrear rent into the accommodation service provider, up right until the date of being click here defunded."

NSFAS discussed that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be answerable for payment of lease towards the lessor within the date of getting here 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 any rental to the click here 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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