Accommodation companies urged to stop demanding deposit from NSFAS funded college students



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

This arrives soon after NSFAS received experiences about some accommodation suppliers who require NSFAS-funded students to pay for a deposit or top-up payment as a way to get usage of the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement among the personal accommodation providers and NSFAS funded students," NSFAS stated in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will be paid out monthly into the accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay for a deposit, top-up payments, or any other varieties of payment towards the lessor, or another person in reference to this agreement, read more including payment of rent, even though awaiting payment from NSFAS. The lessor shall don't have any recourse from the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded due to an incorrect decision check here by NSFAS, the student will not be responsible for payment of any arrear rent to the accommodation provider, up until finally the date of being defunded."

NSFAS described that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding currently being defunded nsfas login by NSFAS, the student will be chargeable for payment of lease on the lessor through the date nsfas allowances 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 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 regarding the interpretation or implementation of the agreement, must be click here dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za

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