Accommodation suppliers urged to stop demanding deposit from NSFAS funded college 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 right after NSFAS gained stories about some accommodation companies who require NSFAS-funded students to pay a deposit or top-up payment in an effort to get use of the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers from the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement involving the private accommodation vendors and NSFAS funded students," NSFAS explained in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent will be paid out regular monthly on the accommodation provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for private accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not need or permit the lessee to pay for a deposit, top-up payments, or some other forms of payment on the lessor, or another person in connection with this arrangement, including payment of rent, even though awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default inside the payment of rent by NSFAS," the agreement reads.
The NSFAS terms and get more info conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded because of an incorrect decision by NSFAS, the student will not be accountable for payment of any arrear rent for the accommodation supplier, up until eventually the date of being defunded."
NSFAS defined that nsfas university allowances where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be chargeable for payment of lease for the lessor from your date of becoming defunded.
"Where the student is defunded by NSFAS due to a misrepresentation nsfas tvet by the lessee/guardian at nsfas eligibility criteria 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 nsfas agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za