Accommodation suppliers urged to stop demanding deposit from NSFAS funded students



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 following NSFAS acquired stories about some accommodation providers who demand NSFAS-funded students to pay for a deposit or top-up payment in order to get usage of the permitted private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers in the compulsory conditions, as furnished by the Standardised Fixed-Term Lease Agreement between the non-public accommodation companies and NSFAS funded students," NSFAS said in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease might be paid month to month to the accommodation company (lessor) by NSFAS, on behalf from the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or almost every other types of payment into the lessor, or some other person in reference to this agreement, together with payment of rent, though awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for get more info any default inside the payment of rent by NSFAS," the arrangement reads.

The NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded resulting from an incorrect decision by NSFAS, the student will not be answerable for payment of any arrear rent towards the click here accommodation company, up until the date of being defunded."

NSFAS discussed that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar are going to be liable for payment of lease on the lessor within the here date of becoming 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 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 get more info this purpose.
From: SAnews.gov.za

Leave a Reply

Your email address will not be published. Required fields are marked *