Accommodation companies urged to halt demanding deposit from NSFAS funded university 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 soon after NSFAS been given stories about some accommodation companies who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get usage of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation vendors on the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Settlement concerning the private accommodation vendors and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent will probably be paid out regular for the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal.
"The lessor may not demand or allow the lessee to pay a deposit, top-up payments, or every other types of payment into the lessor, or almost every other person in connection with this arrangement, which include payment of lease, nsfas student document submission deadline whilst awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation vendors’ participation on the nsfas student document submission deadline student accommodation portal also states that: nsfas application delay "Where the NSFAS-funded student is defunded as a result of an incorrect selection by NSFAS, the student won't be liable for payment of any arrear rent to your accommodation provider, up until eventually the day of being defunded."
NSFAS described that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the student will be chargeable for nsfas payment of hire towards the lessor within the date of getting 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 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 more info 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