Minister Nzimande has warned that South Africa’s student debt could have serious implications for the future sustainability of the country’s higher education institutions.
The current student debt owed to universities and other tertiary institutions in South Africa stands at around R16.5 billion, with the current cost of debt annually amounting to about R1.5 billion.
This was revealed last week during the DHET address on the department's readiness for the 2023 academic year.
In light of the announcement the South African Student Congress (SASCO) has emphasized their calls for the private sector to assist in repaying student debt.
SASCO President Vezinhlanhla Simelane says although there are many individual private sector entities that offer bursaries and scholarships to students in higher education, there has not been any evidence of significant contributions from the private sector as a whole.
We [SASCO] have always raised our views that government alone cannot be able to fund higher education because you know ever well that at the end people who benefit from us being graduate its not only government but also the private sector.
He adds, “We [SASCO] think that the government must find more to reduce the student debt and at the same time the private sector must be encouraged to play a critical role in that regard.”
Furthermore, the union argues that a thorough investigation should also launched into the amount of the student debt as they believe that institutions may be inflating this amount.
Simelane says that the union has called for a tax-based system where companies would be obligated to make payments and have urged government to be at the centre of this model so that they can keep track of how the individual companies and departments are contributing money towards education.
Addressing the issue of student debt, Minister Nzimande said that his department was set on wrapping up consultations on a new comprehensive student funding model that aims to decrease student debt.
A funding scheme to address those who form part of the missing middle is also being finalised.
