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 received reports about some accommodation providers who require NSFAS-funded students to pay a deposit or top-up payment in order to get access to the approved private accommodation.
Compulsory conditions
“NSFAS reminds accommodation providers of the compulsory conditions, as provided by the Standardised Fixed-Term Lease Agreement between the private accommodation providers and NSFAS-funded students,” National Student Financial Aid Scheme said in a statement on Thursday.
The said agreement states that the rent will be paid monthly to the accommodation provider (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions, for private accommodation providers’ participation on the student accommodation portal.
“The lessor may not require or permit the lessee to pay a deposit, top-up payments, or any other forms of payment to the lessor, or any other person in connection with this agreement, including payment of rent, while awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default in the payment of rent by National Student Financial Aid Scheme,” the agreement reads.
Defunded students
The NSFAS terms and conditions for private accommodation providers’ participation on the student accommodation portal also states that: “Where the NSFAS-funded student is defunded due to an incorrect decision by NSFAS, the student will not be liable for payment of any arrear rent to the accommodation provider, up until the date of being defunded.”
NSFAS explained that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be liable for payment of rent to the lessor from the date of being defunded.
“Where the student is defunded by National Student Financial Aid Scheme due to a misrepresentation by the lessee/guardian at any stage, the student must immediately vacate the leased property. They will be liable for payment of all rent due to the accommodation provider.
Disclaimers
“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 the agreement, must be dealt with in accordance with any dispute resolution procedure determined by National Student Financial Aid Scheme for this purpose.
- SAnews.gov.za
