Accommodation companies urged to stop demanding deposit from NSFAS funded college students
Accommodation companies urged to stop demanding deposit from NSFAS funded college students
Blog Article
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 just after NSFAS gained stories about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment so as to get usage of the approved private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers with the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement amongst the private accommodation providers and NSFAS funded students," NSFAS said in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease is going to be paid out every month into the accommodation service provider (lessor) by NSFAS, on behalf of 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 call for or permit the lessee to pay a deposit, top-up payments, or another forms of payment into the lessor, or another person in connection with this agreement, such as payment of rent, although awaiting payment nsfas university allowances from NSFAS. The lessor shall haven't any recourse towards the lessee for any default while in the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect selection by NSFAS, the coed will check here not be chargeable for payment of any arrear rent for the accommodation service provider, up right up until the day of being defunded."
NSFAS defined that wherever the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding getting defunded by NSFAS, the scholar are going to be liable for payment of rent to the lessor within read more the date of getting defunded.
"Where the student is defunded by NSFAS due to a misrepresentation read more 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 more info 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