The higher education debt crisis in South Africa has reached a staggering R59 billion, with over 165,000 students unable to access their qualification certificates due to unpaid fees. This was revealed during a briefing to Parliament’s Portfolio Committee on Higher Education by the Department of Higher Education and Training (DHET), Universities South Africa (USAF), and the South African Public Colleges Organisation.
The DHET reported that 165,000 qualification certificates are being withheld due to outstanding student debt, while USAF placed the number at 188,209. The committee heard that debt linked to students funded by the National Student Financial Aid Scheme (NSFAS) now stands at R29 billion, while self-funded students owe R26 billion. Institutions are also carrying R12 billion in irrecoverable debt.
Student Debt Crisis Worsening
Parliament’s Higher Education Committee warned that withholding certificates is trapping graduates in a cycle of unemployment and debt. Committee chairperson Tebogo Letsie said students without certificates face slim chances of finding work. “The statistics show that student debt is continuing to rise, which suggests that the measures put in place are not working as intended,” Letsie said.
According to the Department of Higher Education and Training, universities of technology are carrying the highest debt ratios, although traditional universities also continue to face major debt burdens. The committee further warned that the financial stability of universities is increasingly tied to the survival of NSFAS.
Causes of the Crisis
The committee identified ongoing reconciliation problems between NSFAS and universities as one of the biggest contributors to student debt, alongside soaring accommodation costs and delayed NSFAS payments. To address the crisis, the committee has called on the DHET to urgently resolve ongoing disputes between NSFAS and institutions and to accelerate efforts towards a sustainable student funding model.
Some of the key issues that need to be addressed include:
- Ongoing reconciliation problems between NSFAS and universities
- Soaring accommodation costs
- Delayed NSFAS payments
- Irrecoverable debt carried by institutions
As the student debt crisis continues to worsen, it is essential that the government and relevant stakeholders work together to find a solution. The National Student Financial Aid Scheme needs to be overhauled to ensure that it is effective in providing financial assistance to students.
