Accommodation suppliers urged to stop demanding deposit from NSFAS funded university students



The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.

This arrives following NSFAS gained experiences about some accommodation providers who need NSFAS-funded students to pay for a deposit or top-up payment so as to get access to the accredited private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation suppliers with the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Agreement amongst the non-public accommodation providers and NSFAS funded students," NSFAS explained in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states that the rent will be paid month-to-month towards the accommodation provider (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation providers’ 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 some other forms of payment on the lessor, or any other person in connection with this arrangement, together with payment of click here lease, even though awaiting payment from NSFAS. The lessor shall have no recourse towards the lessee for any default while in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions 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 choice by NSFAS, the student won't be liable for payment of any arrear rent towards the accommodation service provider, up click here right up until the date of being defunded."

NSFAS explained that wherever the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be check here accountable for payment of hire to your lessor from your day of getting 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 student moves, accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the new accommodation provider, website 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 allowances NSFAS for this purpose.
From: SAnews.gov.za

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