A student owes the National Student Financial Aid Scheme (Nsfas) a staggering R400,000 in study loans that were granted before the government’s announcement of free higher education in December 2017.
Nsfas chief corporate services officer Sibongile Mncwabe confirmed to Sunday Times Daily that until the end of March last year, the total debt owed by students was R36.4bn.
She said for the period ending March 31 2020, they recovered R551.3m from previously funded students.
The R10.4bn owed by former students to universities is over and above the R5bn to R7bn owed by current students, which vice-chancellors are refusing to write off.
According to the Nsfas policy, beneficiaries are obliged to make repayments once they are employed and earning an income above R30,000 per annum.
“Repayments range from 3% to 10% depending on what the student is earning. Based on the financial status and circumstances of the student, they can negotiate with Nsfas and make payment arrangements.”
She said Nsfas had a partnership with the SA Revenue Service, which made provision for Sars to disclose to Nsfas the names of debtors, their tax reference number and contact details as well as the contact details of their employers.
She said students who failed to make payment arrangements were handed over to debt collectors.
Nsfas received R42bn for the 2021/22 financial year, which included R6.9bn that was taken away from the department of higher education’s budget to fund first-year students.
She said 588,746 new applicants who wanted to study at university would receive funding this year.
Besides the R36.4bn owed to Nsfas, 106,494 students who graduated between 2010 and last year owe 21 of the country’s 26 universities some R10.4bn in outstanding fees.
Tshwane University of Technology is owed R4.4bn.
The R10.4bn owed by former students to universities is over and above the R5bn to R7bn owed by current students, which vice-chancellors are refusing to write off.
Most students with current outstanding debt are from lower-middle-class families and are the children of teachers, nurses, police officers and other government workers whose annual family income is more than R350,000. Students from poor and working class backgrounds whose annual family income is R350,000 and below are eligible for bursaries from Nsfas.
Asked whether government should scrap the historic debt owed by students, Mncwabe said: “Nsfas is unable to make comment on matters between institutions and government.”
