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 never to demand a deposit or top-up payment from NSFAS-funded students.
This comes just after NSFAS received reports about some accommodation companies who require 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 obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement amongst the personal accommodation suppliers and NSFAS funded students," NSFAS mentioned in a statement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the rent are going to be paid month to month to the accommodation service provider (lessor) by NSFAS, on behalf in the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation suppliers’ participation on the student accommodation portal.
"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or another kinds of payment for the lessor, or another person get more info in reference to this agreement, like payment of lease, though awaiting payment from NSFAS. The lessor shall haven't any recourse versus the lessee for any default while in the payment of rent by NSFAS," the arrangement reads.
The read more NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect determination by NSFAS, the student won't be answerable for payment of any arrear rent for the accommodation company, up till the date of being defunded."
NSFAS stated that exactly where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be accountable for payment of hire on the lessor within the day of becoming defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, here 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 click here pay any rental to the new accommodation provider, and any such rental payments check here 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