ACCOMMODATION PROVIDERS URGED TO END DEMANDING DEPOSIT FROM NSFAS FUNDED UNIVERSITY STUDENTS

Accommodation providers urged to end demanding deposit from NSFAS funded university students

Accommodation providers urged to end demanding deposit from NSFAS funded university students

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

This comes after NSFAS obtained stories about some accommodation suppliers who demand NSFAS-funded students to pay a deposit or top-up payment so as to 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 Agreement involving the non-public accommodation companies and NSFAS funded students," NSFAS reported in a statement on Thursday.

The Standardised Fixed-Term Lease Agreement states the lease will be paid every month to the accommodation supplier (lessor) by NSFAS, on behalf with the lessee (NSFAS funded student), in accordance using the NSFAS conditions and terms for personal accommodation providers’ participation on the student accommodation portal.

"The lessor may not require or allow the lessee to pay a deposit, top-up payments, or some other kinds of payment to your lessor, or some other person in connection with this arrangement, which include payment of nsfas lease, whilst awaiting here payment from NSFAS. The lessor shall have no recourse from the lessee for any default in the payment of rent by NSFAS," the agreement reads.

The NSFAS terms and conditions for nsfas student allowances private accommodation vendors’ 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 website liable for payment of any arrear rent into the accommodation service provider, up right until 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 scholar are going to be liable for payment of rent towards the lessor with the date of becoming 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 nsfas student allowances 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 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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