Accommodation vendors urged to end demanding deposit from NSFAS funded 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 immediately after NSFAS been given experiences about some accommodation companies who demand NSFAS-funded students to pay a deposit or top-up payment so that you can get usage of the approved private accommodation.

Friday, February 7, 2025
"NSFAS reminds accommodation vendors from the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Settlement involving the personal accommodation companies and NSFAS funded students," NSFAS said in a press release on Thursday.

The Standardised Fixed-Term Lease Agreement states which the rent will likely be paid month-to-month to the accommodation service provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.

"The lessor may not need or allow the lessee to pay a deposit, top-up payments, or any other varieties of payment on the lessor, or every other person in reference to this agreement, including payment of lease, whilst 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 nsfas application delay agreement reads.

The NSFAS conditions and terms for private accommodation vendors’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded on account of an incorrect decision by NSFAS, the student won't be answerable for payment of any arrear rent for the accommodation service provider, up until eventually the day of being defunded."

NSFAS explained that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding remaining defunded by NSFAS, the student is going to be liable for payment of rent on the lessor from the date of staying defunded.

"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian more info at any stage, the student must immediately vacate the leased property; and will be liable for payment of all rent due to here the accommodation provider.

"Where the student moves, accommodation providers without the prior approval of nsfas tvet 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," check here 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

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