Accommodation providers urged to stop demanding deposit from NSFAS funded college 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 arrives just after NSFAS obtained stories about some accommodation suppliers who need NSFAS-funded students to pay for a deposit or top-up payment in an effort to get usage of the authorised private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the obligatory conditions, as provided by the Standardised Fixed-Term Lease Arrangement involving the personal accommodation vendors and NSFAS funded students," NSFAS explained in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will be paid out month-to-month to the accommodation company (lessor) by NSFAS, on behalf of your 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 need or permit the lessee to pay for a deposit, top-up payments, or some other varieties of payment towards the lessor, or another person in connection with this agreement, such as payment of rent, though awaiting payment from NSFAS. The lessor shall don't have any recourse towards the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS conditions and terms for nsfas application delay private accommodation suppliers’ participation on the student accommodation portal nsfas also states that: "Where the NSFAS-funded student is defunded on account of an incorrect choice by NSFAS, the student won't be responsible for payment of any arrear rent to the accommodation company, up until the date of being defunded."

NSFAS explained that the place the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student is going to be responsible for payment of rent on the lessor in the date of currently being defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by click here the click here 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 nsfas status check 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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