In recent years, the South African economy has been faced with rising exchange rates, fuel price increases, inflation, and commodity prices that are not stable.
An expert has shared that the rising cost of living has negatively impacted consumers, as salaries remain stagnant.
In 2022, almost a quarter of parents didn't pay school fees, this includes government fee-paying schools and private schools.
Although 62.57% of school fee accounts were in good standing, TPN Credit Bureau, has revealed that this was still far below pre-pandemic levels of around 68% in 2018 and 2019.
A recently released survey by TPN Credit Bureau has also revealed that more than 40% of private schools reported that they have fewer learners this year than they did last year. In an interview, the Bureaus head of marketing, Waldo Marcus said:
We are seeing a deterioration from the previous year and the greatest concern is the number of parents not making any payments.
Marcus also said late payment places additional strain on schools' cash flow and their ability to meet their financial obligations timeously.
TPN Credit Bureau CEO Michelle Dickens said that this will lead to an increase of people relying on debt to survive the first month of the school year. Schools are also feeling the pinch too as they had to implement budget cuts by two-thirds to keep afloat.
Dickens explained that private schools had to cut back on permanent teachers, and government schools and public schools had to cut back on temporary teachers and on groundsmen.
In public schools, parents, and caregivers are entitled to an exemption either in fuller or parts, depending on their financial situation of which they should be transparent about to the school in a form of an affidavit.
Parents in private schools can engage with the school regarding school fees and enter into a payment plan. An acknowledgment of debt then gets repaid over a period of time.
