Accommodation vendors urged to end demanding deposit from NSFAS funded university students
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.
This arrives just after NSFAS acquired experiences about some accommodation providers who need NSFAS-funded students to pay a deposit or top-up payment to be able to get entry to the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers of your compulsory conditions, as provided by the Standardised Fixed-Term Lease Settlement concerning the private accommodation providers and NSFAS funded students," NSFAS stated in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent is going to be paid regular into the accommodation service provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or every other forms of payment to the lessor, or another person in reference to this agreement, including payment of hire, although awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee nsfas allowances for any default while in the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded as a consequence of an incorrect choice website by NSFAS, the scholar will not be chargeable for payment of any arrear rent towards the accommodation company, up till the date of being defunded."
NSFAS spelled out that where the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be accountable for payment of hire to the lessor in the date of remaining defunded.
"Where nsfas student allowances 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 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 nsfas status check said.
The scheme emphasised that any dispute arising between the parties regarding the interpretation or implementation of the agreement, must be dealt with nsfas eligibility criteria in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za