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 arrives just after NSFAS been given stories about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment as a way to get usage of the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation providers of your compulsory conditions, as supplied by the Standardised Fixed-Term Lease Agreement amongst the non-public accommodation companies and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states the lease will be paid monthly for the accommodation company (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation companies’ 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 another forms of payment towards the lessor, or every other person in connection with this agreement, such as payment of rent, whilst awaiting payment from nsfas status check NSFAS. The lessor shall have no recourse towards the lessee for any default inside the payment of rent by NSFAS," the agreement nsfas academic pathways reads.
The NSFAS terms and conditions for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded here as a consequence of an incorrect determination by NSFAS, the coed will not be liable for payment of any arrear rent to the accommodation service provider, up here right until the day of being defunded."
NSFAS described that exactly where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding currently being defunded by NSFAS, the student is going to be accountable for payment of hire for the lessor from the day of becoming 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 nsfas application delay 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 dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za