Accommodation providers urged to end demanding deposit from NSFAS funded students



The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.

This comes just after NSFAS been given reports about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment to be able to get entry to the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement between the non-public accommodation providers and NSFAS funded students," NSFAS explained in a statement on Thursday.

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

"The lessor may not call for or permit the lessee to pay for a deposit, top-up payments, or almost every other kinds of payment for the lessor, or any other person in reference to this arrangement, like payment of lease, even though awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any default within the nsfas eligibility criteria payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a result of an incorrect decision by NSFAS, the coed will not be answerable for payment of any arrear rent on the accommodation provider, up until the day of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded by NSFAS, the click here scholar will be accountable for payment of hire for the lessor through the day 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 all rent due to nsfas tvet the accommodation provider.

"Where the student moves, accommodation providers without the prior nsfas allowances approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, and any such rental payments will here 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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