Accommodation vendors urged to end demanding deposit from NSFAS funded college students
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not demand a deposit or top-up payment from NSFAS-funded students.
This comes immediately after NSFAS received stories about some accommodation vendors who require NSFAS-funded students to pay for a deposit or top-up payment to be able to get access to the accepted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies from the obligatory conditions, as supplied by the Standardised Fixed-Term Lease Agreement in between the private accommodation vendors and NSFAS funded students," NSFAS explained in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states the rent is going to be paid month to month towards the accommodation provider (lessor) by NSFAS, on behalf of your lessee (NSFAS funded student), in accordance using the NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal.
"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or some other types of payment for the lessor, or another person in connection with this arrangement, together with payment of lease, when awaiting payment from NSFAS. The lessor shall have no recourse versus the lessee for any default nsfas login from the payment of rent by NSFAS," the agreement reads.
The NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal read more also states that: "Where the NSFAS-funded student is defunded due to an incorrect choice by NSFAS, the student will not be responsible for payment of any arrear rent on the accommodation provider, up until the date of being defunded."
NSFAS stated that wherever the NSFAS-funded student chooses nsfas academic pathways to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be responsible for payment of lease towards the lessor from the day of being defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any here 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, 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 nsfas allowances the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za