ACCOMMODATION COMPANIES URGED TO HALT DEMANDING DEPOSIT FROM NSFAS FUNDED UNIVERSITY STUDENTS

Accommodation companies urged to halt demanding deposit from NSFAS funded university students

Accommodation companies urged to halt demanding deposit from NSFAS funded university students

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

This comes right after NSFAS been given stories about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment to be able to get use of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors of the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement concerning the personal accommodation suppliers and NSFAS funded students," NSFAS explained in an announcement on Thursday.

The Standardised Fixed-Term Lease Agreement states the rent is going to be paid regular monthly to your accommodation service provider (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not call for or allow the lessee to pay for a deposit, top-up payments, or some other varieties of payment towards the lessor, or some other person in reference to this arrangement, which include payment of hire, though awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default inside the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation nsfas student allowances vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the coed will not be here chargeable for payment of any arrear rent on the accommodation provider, up right until the date of being defunded."

NSFAS described that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding staying defunded by NSFAS, the student will be liable for payment of rent for the lessor through the date of staying defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any nsfas student allowances stage, the student must immediately vacate the leased property; and will be liable for get more info 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 read more 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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