Accommodation companies urged to halt demanding deposit from NSFAS funded university students
Accommodation companies urged to halt demanding deposit from NSFAS funded university students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.
This comes following NSFAS received experiences about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment in an effort to get access to the authorised private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement amongst the private accommodation providers and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the lease will probably be paid out month-to-month on the accommodation company (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not involve or allow the lessee to pay a deposit, top-up payments, or every other varieties of payment into the lessor, or any other person in connection with this arrangement, which include payment of nsfas university allowances hire, whilst awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default inside the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect selection by NSFAS, the coed won't be answerable for payment of any arrear rent for the accommodation service provider, up until the day of being defunded."
NSFAS discussed that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded here by NSFAS, the student is going to be accountable for payment of lease for read more the lessor within the date of remaining 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 check here 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 any such rental website 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