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 to not demand a deposit or top-up payment from NSFAS-funded students.
This comes right after NSFAS gained stories about some accommodation suppliers who need NSFAS-funded students to pay a deposit or top-up payment so that you can get use of the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies in the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement in between the non-public accommodation suppliers and NSFAS funded students," NSFAS explained in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states that the rent might be paid regular monthly to the accommodation company (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation vendors’ participation on the student accommodation portal.
"The lessor may not call for or permit the lessee to pay a deposit, top-up payments, or some other forms of payment on the lessor, or any other person in connection with this arrangement, which includes payment of hire, while awaiting payment from NSFAS. The lessor shall don't have any recourse versus the lessee for any default inside the payment of rent by click here NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect choice by NSFAS, the coed won't be responsible for payment of any arrear rent to your accommodation service provider, up right up until the day of being defunded."
NSFAS stated that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding getting defunded here by NSFAS, the student is going to be responsible for payment of lease for the lessor through 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 click here 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, here 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 dealt with in accordance with any dispute resolution procedure determined by NSFAS here for this purpose.
From: SAnews.gov.za