Accommodation companies urged to halt demanding deposit from NSFAS funded college students



The National Student Financial Aid Scheme (NSFAS) has urged landlords never to require a deposit or top-up payment from NSFAS-funded students.

This comes immediately after NSFAS received reports about some accommodation providers who demand NSFAS-funded students to pay a deposit or top-up payment in order to get access to the authorized private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation companies in the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Arrangement among the personal accommodation companies and NSFAS funded students," NSFAS explained in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states which the lease will probably be paid out monthly towards the accommodation company (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.

"The lessor may not involve or permit the lessee to pay for a deposit, top-up payments, or every other sorts of payment to your lessor, or almost every other person in connection with this arrangement, which includes payment of hire, when awaiting payment from NSFAS. The lessor shall haven't any recourse against the lessee for any default during the payment of rent by NSFAS," the here 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 resulting from an incorrect decision by NSFAS, the student won't be liable for payment of any arrear rent towards the accommodation company, up until eventually the date of being defunded."

NSFAS described that where by the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding becoming defunded by NSFAS, the scholar will be answerable for payment of rent for the lessor through the date of being defunded.

"Where the student is defunded by NSFAS nsfas tvet 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 read more to the click here 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 get more info 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

Leave a Reply

Your email address will not be published.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